Today’s FINANCIAL LITERACY LESSON will be focused on BEAR MARKET VS BULL MARKET!(Market is referring to the stock market) Before you invest, it is important that you understand what the market is doing and I hope this post is helpful!
BEAR MARKET
When a market experiences prolonged price declines
Characterized by investors’ pessimism and low confidence
Occurs before or after the economy moves into a recession
A condition in which securities prices fall 20% or more from recent highs for a two-month period
The average length of a bear market is 363 days according to investment company Invesco
A bear market occurs every six years
The Covid-19 bear market started March 11, but entered a bull market a couple weeks later
BULL MARKET
Stock prices are rising
Market sentiment is optimistic
Occurs when there is a rise of 20% or more over a two-month period
The average length of a bull marker is 6.6 years
During this period where more companies start trading through an IPO
For more on bear and bull markets: https://www.investopedia.com/terms/b/bearmarket.asphttps://www.thebalance.com/what-is-a-bear-market-difference-from-a-bull-3305814https://www.nerdwallet.com/article/investing/how-to-invest-during-a-bear-market#:~:text=A%20bear%20market%20is%20defined,well%20as%20for%20individual%20stocks.https://www.thebalance.com/what-is-a-bull-market-3305821https://www.investor.gov/introduction-investing/investing-basics/glossary/bull-markethttps://www.acorns.com/money-basics/investing/what-is-a-bull-market/https://www.investopedia.com/terms/b/bullmarket.asp
HAIRSTON HUSTLE 