When such bubbles burst, companies die. The Bull Market Bull markets draw investors who to want to purchase stocks. The performance of the economy and the stock market tends to be shifting positively, making it a good time to invest for most investors - if they invest early enough. I
nvestors tend to have more money during the economic conditions of a bull market. However, the increased demand and shortage of supply for stocks can cause the stock prices to become inflated, or over-valued. It can be easier to earn email list a profit in a bull market because the trend of the economy is shifting upward and everyone knows. But eventually the economy and the stock market experience another downturn in its cycle of ups and downs.
For investors, the profitability key comes in accurately determining the transition point where the market begins to fall and then take at least some of your profits by selling a portion of your stocks before being negatively impacted by the downturn. The Bear Market The bear market can be extremely difficult to navigate, especially for a novice investor. Investors here use a number of special investment strategies to try to make the best of a bad situation.