Logo of Phnom Penh Post newspaper Phnom Penh Post - Defining a bull or bear market

Defining a bull or bear market

Content image - Phnom Penh Post
With a bull thrusting up its horns and a bear striking downwards with its claws, the terms are used to describe rising and falling markets. SUPPLIED

Defining a bull or bear market

The terms “bull” and ”bear” are used to describe conditions in a financial market, with the former used when prices are rising and investor optimism is high, and the latter when the reverse is the case.

The origins are unclear, but it is thought they refer to how the animals attack, with a bull thrusting up its horns and a bear striking downwards with its claws.

While there are no official criteria for when to apply the term “bull”, it is generally accepted that such a market occurs when increases of 20 per cent or more above near-term lows are witnessed.

Stock prices rise with investor confidence on the back of a booming economy, a strong job market and healthy fiscal indicators such as gross domestic product (GDP).

Bull markets generally last for prolonged periods of time, even over many years.

But when the economy encounters difficulties, such as growing jobless figures or looming recession, a bull market becomes heavily pressured, likely leading to a bearish trend.

Three main factors point to whether the market will be “bull” or “bear”: 1) economic factors; 2) supply and demand in securities; and 3) investor psychological factors.

1. Economic Factors

Content image - Phnom Penh Post

2. Supply and Demand in Securities

Content image - Phnom Penh Post

3. Investor Psychological Factors

Content image - Phnom Penh Post

Reference: Price, M. (2023, March 14). The Motley Fool. Bull vs. Bear Market: What’s the Difference?

https://www.fool.com/investing/how-to-invest/bull-vs-bear-market/

Content image - Phnom Penh Post

Prepared by: Department of Research, Training, Securities Market Development and International Relations Securities and Exchange Regulator of Cambodia
E-mail: [email protected]
Mobile: 023 885 611

MOST VIEWED

  • Joy as Koh Ker Temple registered by UNESCO

    Cambodia's Koh Ker Temple archaeological site has been officially added to UNESCO’s World Heritage List, during the 45th session of the World Heritage Committee held in Riyadh, Saudi Arabia, on September 17. The ancient temple, also known as Lingapura or Chok Gargyar, is located in

  • Cambodia set to celebrate Koh Ker UNESCO listing

    To celebrate the inscription of the Koh Ker archaeological site on UNESCO’s World Heritage List, the Ministry of Cults and Religion has appealed to pagodas and places of worship to celebrate the achievement by ringing bells, shaking rattles and banging gongs on September 20. Venerable

  • Ream base allegations must end, urges official

    A senior government official urges an end to the allegations and suspicions surrounding the development of Cambodia’s Ream Naval Base, now that Prime Minister Hun Manet has addressed the issue on the floor of the 78th UN General Assembly (UNGA 78). Jean-Francois Tain, a geopolitical

  • CP denied registration documents by ministry

    The Ministry of Interior will not reissue registration documents to the Candlelight Party (CP). Following a September 21 meeting between ministry secretary of state Bun Honn and CP representatives, the ministry cited the fact that there is no relevant law which would authorise it to do

  • Manet touches down in Beijing for high-level meetings

    Prime Minister Hun Manet arrived in Beijing on September 14 for his first official visit to China, where he is slated to attend the 20th China-ASEAN Expo and meet other leaders including Chinese President Xi Jinping. Upon his arrival, Manet laid a wreath at the Monument

  • Cambodian diaspora laud Manet’s UN Assembly visit

    Members of the Cambodian diaspora are rallying in support of Prime Minister Hun Manet’s forthcoming visit to the 78th UN General Assembly (UNGA 78) in the US’ New York City this week. Their move is an apparent response to a recent call by self-exiled former