Bullish Market vs. Bearish Market
If you have extra disposable income and you are planning on becoming a serious investor, then creating a diversified portfolio with exposure to all kind of different markets, is the first thing you should focus on.
For example, in the portfolio of any serious investor you should find some exposure to gold, as the metal is one of the most solid assets on the market. Also you should have exposure to emerging markets because currency markets are very volatile. Including real estates or debt funds in your portfolio would be a good idea as well. Besides having exposure to different market types, you should seriously take in consideration writing covered calls, as these will give your stocks downside-protection.
Combining a diversified portfolio with selling call options, you will have all the chances of making a nice steady profit every month. In knowing what a serious portfolio includes, it would greatly benefit you to know how a market is referred to depending on expectations. A bull market in the investment business is a stock market where the share prices are showing an upward trend or are expected to do the same. It can apply to other tradable items as well such as commodities, bonds, currencies or anything else that is tradable.
In bull markets we will find optimistic investors characterized by confidence and expectations that their stocks value will increase. The bear market is the polar oppposite. Here the share prices are likely to see a downward trend. It is a market where we will find pessimistic investors that don't have too much faith in the future of their stock value.
Simply put, a bull market is an upbeat financial market where investors expect the share prices to the overall stocks, bonds, commodities or currencies they own to rise in the very near future and a bear market is startling contrast because here investors expect their share's price to go down.
The bull market and the bear market take their name from nature, because a bull attacks his opponents by raising his horns into the air while a bear swipes its paws down.
On the same principle, the bullish sentiment and the bearish sentiment are the feelings which characterize the investors of that specific market. Having a bearish sentiment means you are pessimist regarding your shares and you expect the worst, while having a bullish sentiment means you are expecting the share prices to raise.
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