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    Bull and Bear

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    Gayatri Nabar
    The document discusses bull and bear markets. A bull market occurs when stock prices are rising due to a strong economy, high employment, and growing company profits. Investors are optimistic and demand for stocks is high. A bear market occurs when stock prices are falling due to a weak economy, high unemployment, and declining company profits. Investors are pessimistic and demand for stocks is low. Whether a market is bullish or bearish depends on factors like the supply and demand for stocks, investor psychology, and economic conditions. The document provides various examples and strategies related to investing during bull and bear markets.

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    Bull and Bear

    Uploaded by

    Gayatri Nabar
    1K views23 pages
    The document discusses bull and bear markets. A bull market occurs when stock prices are rising due to a strong economy, high employment, and growing company profits. Investors are optimistic and demand for stocks is high. A bear market occurs when stock prices are falling due to a weak economy, high unemployment, and declining company profits. Investors are pessimistic and demand for stocks is low. Whether a market is bullish or bearish depends on factors like the supply and demand for stocks, investor psychology, and economic conditions. The document provides various examples and strategies related to investing during bull and bear markets.

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    It about Shares in market

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    The document discusses bull and bear markets. A bull market occurs when stock prices are rising due to a strong economy, high employment, and growing company profits. Investors are optimistic and demand for stocks is high. A bear market occurs when stock prices are falling due to a weak economy, high unemployment, and declining company profits. Investors are pessimistic and demand for stocks is low. Whether a market is bullish or bearish depends on factors like the supply and demand for stocks, investor psychology, and economic conditions. The document provides various examples and strategies related to investing during bull and bear markets.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    1K views23 pages

    Bull and Bear

    Uploaded by

    Gayatri Nabar
    The document discusses bull and bear markets. A bull market occurs when stock prices are rising due to a strong economy, high employment, and growing company profits. Investors are optimistic and demand for stocks is high. A bear market occurs when stock prices are falling due to a weak economy, high unemployment, and declining company profits. Investors are pessimistic and demand for stocks is low. Whether a market is bullish or bearish depends on factors like the supply and demand for stocks, investor psychology, and economic conditions. The document provides various examples and strategies related to investing during bull and bear markets.

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    The key takeaways are that a bull market occurs when stock prices are rising due to a strong economy and optimism, while a bear market occurs when stock prices are falling due to a weak economy and pessimism.

    A bull market occurs when stock prices are rising due to a strong economy and optimism, characterized by increasing demand and falling supply of securities. A bear market occurs when stock prices are falling due to a weak economy and pessimism, characterized by falling demand and increasing supply of securities.

    Bull markets are driven by factors like high employment, a strong economy, new technologies, and wars which increase demand for securities. Bear markets are driven by factors like a discouraging economy, unemployment, international crises, and lack of investor confidence which decrease demand.

    BULL MARKET

    increase in market share


    prices
    the economy is great,
    people are finding jobs,
    gross domestic
    product (GDP) is
    growing,
    stocks are rising.
    If a person is optimistic
    and believes that stocks
    will go up, he or she is
    called a "bull" and is said
    to have a "bullish
    outlook".

    BEAR MARKET
    stock prices are falling
    the economy is bad,
    recession is looming and
    low investor confidence

    If a person is pessimistic,
    believing that stocks are
    going to drop, he or she
    is called a "bear" and
    said to have a "bearish
    outlook".









    WHERE DID THEY GET THEIR NAMES.?


    BULL BEAR
    A bull will thrust its horns up into the air.
    Trend up.
    A bear will swipe down.
    Trend down.
    CHARACTERISTICS OF BULL AND BEAR MARKET
    Supply and Demand for Securities
    Bull Market:
    strong demand & weak supply for securities.
    share prices will rise due to competition.

    Bear Market :
    more people are looking to sell than buy as demand is lower
    than supply .
    share prices drop.
    CONT
    Investor Psychology:
    Bull Market:
    Investor interested in the market
    & participate in the hope of
    obtaining a profit.
    Bear Market :
    the decline in stock market
    prices shakes investor
    confidence.





    CONT..
    Change in Economic Activity:

    Spend
    more
    Profitable business
    Bull market
    Spend less Loss in business
    Bear market
    SECULAR MARKET TREND
    trend is "bullish" or
    upward moving.
    trend is "bearish" or
    downward moving.
    Secular bull market

    Secular bear market

    SECONDARY MARKET TREND
    short-term changes in
    price direction
    duration is a few weeks
    or a few months.
    correction is a short
    term price decline of
    5% to 20% .
    bear market rally
    market price increase
    of 10% to 20%.
    PRIMARY MARKET TREND
    Duration is a year or more.
    Bull market
    Bear market
    Market top
    Market bottom

    CONT
    reached the highest point

    the end of a market downturn
    Market top Market bottom
    MARKET CAPITULATION
    threshold reached after
    a severe fall in the
    market.
    investors capitulate
    (give up) and sell in
    panic
    further decline in the
    stock's price
    good time to buy
    stocks.
    BULL AND BEAR LINE
    index average line that
    indicates bull
    market or bear
    market in stock market.
    Bearish :current index
    drops below the bull-
    bear line
    bullish : current index
    rises above the line
    WHAT DRIVES BULL MARKETS?

    high
    employment
    Strong
    economy
    New
    technology
    Bull Market

    WHAT DRIVES BEAR MARKETS?

    Discouraging
    Economy
    Unemployment
    Wars & Others
    Bear markets


    How to Predict Bull And Bear
    Markets?

    CONT..
    Bull market
    country wages a war
    increase demand for
    securities
    smaller supplies of
    securities
    increase interest in the
    stock market
    News
    Bear market
    Sudden international
    crises
    decrease demand for
    securities
    Higher supplies of
    securities
    investors are not very
    confident and invest less.
    News







    INVESTING DURING BEAR AND BULL MARKETS

    buy stocks as the market
    gets bullish, and sell when
    prices reach their peak.




    Buy stocks in bearish
    market at low prices,
    to set up long-term
    investments

    HOW TO PROTECT OURSELF FROM BEAR MARKET?
    Play Dead - Stay on the Sidelines

    Putting a larger portion of
    your portfolio in the form of
    money market securities .


    Certificate of deposits

    buy when the right buying
    opportunity comes along.

    stay calm and dont make
    any sudden moves.



    Treasury bills
    CONT..
    Value Stocks
    buying opportunity for investors
    valuations of good companies
    get hammered down.

    Short Selling
    A short position allows an
    investor to profit as the stock
    heads downward.

    CONT..
    Bonds and Asset Allocation
    invest in assets or asset classes
    which meets best the needs
    and objectives of the investor.
    portfolio spread - stocks, bonds,
    cash and alternative assets.

    Defensive Industries
    performs better than the overall market during bad times.
    Eg. toothpaste, shampoo, shaving cream, etc.
    Provides defense to the portfolio.
    BULL MARKET - CASE STUDY

    India's Bombay Stock Exchange Index, SENSEX, was in a bull
    market trend for about five years from April 2003 to January
    2008 as it increased from 2,900 points to 21,000 points.
    BEAR MARKET CASE STUDY
    A bear market followed the Wall Street Crash of 1929 and
    erased 89% (from 386 to 40) of the Dow Jones Industrial
    Average's market capitalization by July 1932, marking the
    start of the Great Depression.

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