Bull market is a common term used often to describe the stock market where prices are expected to rise.
Bull markets are often distinguished by features like investor confidence, optimism, and a strong belief that positive results will continue.
Well, to counter the bull there is the bear market which is used simultaneously by investors in the stock market.
If the market shows a downward trend it is the bull market, if it shows an upward trend it is the bull market.
If you are new to the stock market you can have several questions like when to invest in stocks? When do you sell? Should you sell since things are now so expensive? Or should you play the wait and watch game? What's the right thing to do and when should you do it? How do I know the trend? There are various indicators that help identify the bullish phase of a stock market and only and experienced and intelligent investor can do so.
The bullish phase can be identified by collecting and analysing latest data and updates in the economy.
Bull market depends a lot upon the economy.
A stable economy will promote a healthy market and the bullish phase would be continuous and consistent.
Some of the indicators that support the bull market are: Inflation rate - The bull market is supported to a great extent by the low inflation rate.
Low inflation helps companies to drop its production costs and increasing the earnings continuously.
This leads to a continuous bull run.
Increase in corporate earnings - The best possible indicator of the bull market is the rise in corporate earnings.
Growth in economy and business stability and capacity to create better earnings, is a positive sign to the approaching bull phase.
Interest rates - Every investor is aware of the fact that when the interest rate is low the stock market will rise and the market will dip or go through the bear phase when the interest rate is high.
Dipping the interest rate is always a welcome sign to an investor as it signals the bull phase.
Fund flows and investor interest- This is another significant indicator of the bull phase in the stock market.
Growing interest from big investors and fund houses makes the people happy and they too start taking interest in the market in a great extend.
Long term technical indicators of the bull market include advance decline line, Dow Jones Transportation Average, foreign stock market, earnings, price trend and volume.
Bull markets are often distinguished by features like investor confidence, optimism, and a strong belief that positive results will continue.
Well, to counter the bull there is the bear market which is used simultaneously by investors in the stock market.
If the market shows a downward trend it is the bull market, if it shows an upward trend it is the bull market.
If you are new to the stock market you can have several questions like when to invest in stocks? When do you sell? Should you sell since things are now so expensive? Or should you play the wait and watch game? What's the right thing to do and when should you do it? How do I know the trend? There are various indicators that help identify the bullish phase of a stock market and only and experienced and intelligent investor can do so.
The bullish phase can be identified by collecting and analysing latest data and updates in the economy.
Bull market depends a lot upon the economy.
A stable economy will promote a healthy market and the bullish phase would be continuous and consistent.
Some of the indicators that support the bull market are: Inflation rate - The bull market is supported to a great extent by the low inflation rate.
Low inflation helps companies to drop its production costs and increasing the earnings continuously.
This leads to a continuous bull run.
Increase in corporate earnings - The best possible indicator of the bull market is the rise in corporate earnings.
Growth in economy and business stability and capacity to create better earnings, is a positive sign to the approaching bull phase.
Interest rates - Every investor is aware of the fact that when the interest rate is low the stock market will rise and the market will dip or go through the bear phase when the interest rate is high.
Dipping the interest rate is always a welcome sign to an investor as it signals the bull phase.
Fund flows and investor interest- This is another significant indicator of the bull phase in the stock market.
Growing interest from big investors and fund houses makes the people happy and they too start taking interest in the market in a great extend.
Long term technical indicators of the bull market include advance decline line, Dow Jones Transportation Average, foreign stock market, earnings, price trend and volume.