Bullish v/s Bearish Markets – Understand the Concept – RBI Grade B Exam

Honey Lalwani

5 years ago

You must have definitely heard about the terms Bullish & Bearish Markets here and there in the Finance related news or read it the newspaper. Or if you follow stock market updates, you must have definitely come across these terms. This blog is intended to help you all understand the meanings of these terms in English Language context as well in terms of Financial Markets. Read the blog for better and clear understanding of these.

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Bullish & Bearish Markets – For RBI Grade B Exam

What is a Bull Market?

Know the Literal Meaning of the Word

Bullish – Aggressively confident and Self-Assertive; Optimistic, Hopeful, Buoyant, Positive, Disposed to look on the bright side

Example: He has campaigned courageously despite difficulties that would have stopped many more Bullish Men.

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Meaning in Financial Market Terms

1. The term “bull” or “bullish” comes from the bull, who strikes upwards with its horns, & thus pushing prices higher.

2. Characterized by Rising Share Prices.

3. A Financial Market (whether its currencies, metals or commodities) where prices are rising or are expected to rise.

4. General optimism, Investor confidence and expectations of continuous strong uptrend characterize a Bull Market.

5. A bull market is when an asset’s price is rising—called an uptrend—typically over a sustained time period, such as months or years.

6. A bull market refers to a market that is on the rise. It is typified by a sustained increase in market share prices. In such times, investors often have faith that the uptrend will continue over the long term. Typically, in this scenario, the country’s economy is strong and employment levels are high.

7. Example: We are Bullish on the company’s future.

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What is a Bear Market?

Know the Literal Meaning of the Word

Bearish – Resembling or likened to a bear, typically in being rough, surly, or clumsy; Unfriendly, Bad-tempered, Rude

Meaning in Financial Market Terms

1. The term “bear” or “bearish” comes from the bear, who strikes downward with its paws, & thus pushing prices down.

2. Characterised by Falling Share Prices.

3. The Bear Market is characterised by falling prices and typically shrouded in pessimism.

4. A time when the price of a share is falling and a lot of people are selling them.

5. A bear market is when an asset’s price is falling—called a downtrend—typically over a sustained period of time such as months or years.

6. A bear market is one that is in continuous decline. Share prices are continuously dropping, resulting in a downward trend that investors believe will continue, which, in turn, perpetuates the downward spiral. During a bear market, the economy will typically slow down and unemployment will rise as companies begin laying off workers.

7. Example: The overall oil price outlook is expected to remain Bearish.

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This was all from us in this blog of “Bullish & Bearish Markets”. Now we hope that you will be able to comprehend and understand the meanings of these terms whenever you encounter these anywhere in the News.

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