What is a bull market? Definition, examples, and strategic tips - Business Insider

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A bull market means that stocks are rising, but it pays to understand how it works before you charge

Their prices have been going up, and investors are convinced they'll keep doing so, so they keep buying. This raises prices even higher, due to supply and demand. Buoyed by consumer buying, businesses make more investments, which usually means hiring more workers and paying existing employees more money. And average wages go up, as companies compete for workers. Workers are also more likely to look for a job since they have a better chance of finding one paying them more.

Because it's impossible from day to day to tell when a market has reached its top, it's very difficult to foresee the end before you are in it. The length of any given bull market is informed by the factors of its time — a concept made clear if you take a moment to examine at some of the biggest bull markets in history:In these prime post-war years, the S&P 500 rose 267% over 86 months, which works out to a commendable annualized return of 20%.

But all that gravy hasn't been spread evenly: The main gainers have been Amazon, Netflix, Salesforce, Microsoft, Alphabet, and other monster tech companies that profited from our newly sedentary and homebound lifestyle. Many other companies, especially some in the retail and hospitality/travel sectors, have been more or less treading water, or going bankrupt.

"We feel that after this initial explosive recovery in growth, there might be a bit of disappointment for what you get in fundamentals."Wondering how prudent investors act in a bull market? Here are some tips: It's almost impossible to tell when the market is at its peak, and even professionals rarely manage to call it right. You might not only end up selling too late — but you might also end up selling way too early, missing out on future profits.

 

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michaelkaliika SaIndices 😁😁

I watch the prices change. I mean stuff that they could sell on sale are at full price. The big question are the determinants. I want to learn more about econ.

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