Finance

The History of Bull and Bear Market

Every market follows two market trends Bull and Bear. The terms Bull and Bear came into existence in the 18th century in England. These terms Bulls and Bears are referred to by the name of the animals because of their attacking position of prey and used to describe the market condition. 

A bull stands straight and keeps his head down but horns upward straight in the air, which means now the prices are low, but they are going to rise soon. Or Bull Market is one in which the prices are initially low and then go high. A bull market is appreciating in value.

On the other hand, a bear stands straight and attacks the victim by keeping his claws downwards and tearing the flash, which shows that now the prices are high, but there will be a crash in prices. Or the Bear market is one in which prices are currently high and then go low. A bear market is depreciating in the value. 

Most of the historical shreds of evidence show that the bear came into existence before the bull. In the early seventeenth century, the term “Bearskin” used in terms to sell and “Bearskin jobber” used for one who is selling. 

Bear Market

When the economy of the country is falling, the rate of unemployment increases, time of recession, and prices of the stocks are declining, this market trend is known as Bear market. A market is considered as an actual bear market until there is 20% or more declination in the prices of stocks from recent highs. 

The bear market shows recessions, unemployment and poverty in the nation. A bear market does not last long, but it could be dangerous to invest. But for some investors, a bear trend is the best opportunity to invest in those stocks which were out of budget at the time of the bull market. They buy good stocks at lower rates and wait until bull hits the market and makes a significant profit from this type of deal.

Bear Market Indicators

  • Depressed and sluggish economic growth
  • Decreasing stock prices
  • Higher unemployment rates
  • More investors take short positions
  • Raising interest rates
  • Tightened credit condition
  • Inverted yield curve 
  • Long-term growth expectations changes 

History of Market Crashes

Here is a list of the events when the Bear hit the market mightily and caused drastic loss to the market.

      Event Year Percentage Change
Wall street crash  1929 -33.6%
End of Gold Standard 1931 -26.7%
World War II 1940 -24.6%
Post-WWII Demand Shock 1946 -16.9%
Black Monday 1987 -31.3%
LTCM 1998 -8.7%
Dot-Com Bubble 2002 -19.3%
Lehman Crisis 2008 -25.2%
Great Financial Crisis 2009 -13.8%
US Debt Downgrade 2011 -16.7%
COVID 19 Outbreak 2020 -20.7%

Bull Market

When the economy of the country is booming, the prices of stocks are going high, and there is a rise of 20% or more from the latest low point, this market trend is known as Bull Market. The bull market shows the prosperity of the nation. Bull markets tend to last for more extended periods and make much larger magnitudes than bear markets. 

In the bull market, the condition of the economy is generally favourable. At the time of bull, the investors stay calm and enjoy their investment rising until they smell a bear coming forward. 

Bull Market Indicators

  • High national income
  • A rise in stock price
  • Reduced unemployment rates
  • More and more investors take long positions.
  • Low-interest rates
  • Technology is on the boom.
  • Industrial production statistics are higher.
  • S&P 500 shows higher lows and higher highs

History of Bull Markets

Here is the list of events and years when the bull was in his full form and bounced the market up in the sky with its full throttle.

Event Start Date Months S&P 500 Percent Change
Recovery from wall street crash June 1932 57 325%
World War II April 1942 49 158%
Post War Boom June 1949 89 266%
Cold War Ramps up October 1957 50 86%
JFK aims to get America moving again June 1962 44 80%
The go-go years October 1966 26 48%
Nifty Fifty May 1970 32 74%
A Modest Bull October 1974 74 126%
Reaganomics August 1982 60 229%
Black Monday Comeback December 1987 31 65%
Roaring 90s October 1990 113 417%
Housing Boom October 2002 60 102%
Long, Slow recovery March 2009 131 348%

Bottom Line

There are two sides to everything one is positive, and one is negative. People define positive and negative according to their views of living life, and the same concept is applied to bull and bear markets. For some inventors, the bear market is the best opportunity and for some bull is the one. Both play an essential role and are considered beneficial and detrimental according to the perspective of the person.

Related Articles

274 Comments

  1. online shopping pharmacy india [url=https://indiapharmast.com/#]Online medicine home delivery[/url] top 10 online pharmacy in india

  2. canadian pharmacy ratings [url=https://canadapharmast.com/#]northern pharmacy canada[/url] pharmacy in canada

  3. indianpharmacy com [url=http://indiapharmast.com/#]reputable indian online pharmacy[/url] indian pharmacy online

  4. purple pharmacy mexico price list [url=http://mexicandeliverypharma.com/#]mexico pharmacy[/url] mexican drugstore online

  5. mexican drugstore online [url=https://mexicandeliverypharma.online/#]mexican drugstore online[/url] buying prescription drugs in mexico

  6. mexico drug stores pharmacies [url=https://mexicandeliverypharma.online/#]buying prescription drugs in mexico online[/url] п»їbest mexican online pharmacies

  7. mexico pharmacy [url=https://mexicandeliverypharma.com/#]buying prescription drugs in mexico online[/url] buying prescription drugs in mexico

  8. mexico pharmacies prescription drugs [url=https://mexicandeliverypharma.com/#]medicine in mexico pharmacies[/url] mexican border pharmacies shipping to usa

  9. pharmacies in mexico that ship to usa [url=https://mexicandeliverypharma.com/#]mexican rx online[/url] buying prescription drugs in mexico online

  10. buying from online mexican pharmacy [url=https://mexicandeliverypharma.com/#]п»їbest mexican online pharmacies[/url] mexican mail order pharmacies

  11. medication from mexico pharmacy [url=https://mexicandeliverypharma.online/#]mexican pharmacy[/url] buying from online mexican pharmacy

  12. buying from online mexican pharmacy [url=https://mexicandeliverypharma.com/#]mexico drug stores pharmacies[/url] mexican drugstore online

  13. mexican border pharmacies shipping to usa [url=http://mexicandeliverypharma.com/#]pharmacies in mexico that ship to usa[/url] buying prescription drugs in mexico

  14. best online pharmacies in mexico [url=http://mexicandeliverypharma.com/#]mexican rx online[/url] best online pharmacies in mexico

  15. purple pharmacy mexico price list [url=https://mexicandeliverypharma.online/#]mexican pharmacy[/url] medicine in mexico pharmacies

  16. buying prescription drugs in mexico [url=http://mexicopharmacy.cheap/#]pharmacies in mexico that ship to usa[/url] buying from online mexican pharmacy

  17. top 10 pharmacies in india [url=http://indianpharmacy.company/#]indian pharmacy online[/url] reputable indian pharmacies

  18. online pharmacy tretinoin [url=https://pharmbig24.online/#]how much is adipex at the pharmacy[/url] women’s international pharmacy

  19. buy prescription drugs from india [url=http://indianpharmacy.company/#]reputable indian online pharmacy[/url] indian pharmacies safe

  20. top 10 pharmacies in india [url=https://indianpharmacy.company/#]reputable indian online pharmacy[/url] top 10 online pharmacy in india

  21. mexican pharmaceuticals online [url=http://mexicopharmacy.cheap/#]mexican border pharmacies shipping to usa[/url] purple pharmacy mexico price list

  22. india pharmacy mail order [url=https://indianpharmacy.company/#]buy medicines online in india[/url] top 10 pharmacies in india

  23. se puede comprar sildenafil sin receta [url=http://sildenafilo.men/#]comprar viagra contrareembolso 48 horas[/url] comprar viagra sin gastos de envГ­o

  24. farmacie online affidabili [url=https://tadalafilit.com/#]Cialis generico 20 mg 8 compresse prezzo[/url] Farmacia online piГ№ conveniente

  25. Farmacia online miglior prezzo [url=http://farmaciait.men/#]farmaci senza ricetta elenco[/url] Farmacia online miglior prezzo

  26. farmaci senza ricetta elenco [url=http://brufen.pro/#]Brufen antinfiammatorio[/url] Farmacia online miglior prezzo

  27. cialis farmacia senza ricetta [url=http://sildenafilit.pro/#]viagra naturale in farmacia senza ricetta[/url] viagra 50 mg prezzo in farmacia

  28. pharmacie en ligne sans ordonnance [url=http://clssansordonnance.icu/#]Cialis generique achat en ligne[/url] п»їpharmacie en ligne france

  29. Viagra 100mg prix [url=https://vgrsansordonnance.com/#]Sildenafil Viagra[/url] Viagra homme prix en pharmacie

  30. Viagra pas cher livraison rapide france [url=http://vgrsansordonnance.com/#]Acheter du Viagra sans ordonnance[/url] Viagra homme sans prescription

  31. trouver un mГ©dicament en pharmacie [url=http://clssansordonnance.icu/#]Cialis prix en pharmacie[/url] vente de mГ©dicament en ligne

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button