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Glenda Moehlenpah, CPA, CFP®
Financial Bridges
13319 Poway Road, #506
Poway, CA 92064
Phone: 858-486-0100
Email: glenda@financialbridges.com
Website: www.FinancialBridges.com
July/August 2018
Bulls, Bears & Corrections, Oh My!
Even if you are only a casual observer of the stock market, you probably have heard words like “bulls,” “bears” and “correction” batted around. Here’s a look at five commonly used Wall Street terms that describe not only stock market movement, but markets for other securities, too.
Bulls:
Investors who believe the stock market or other securities markets (like bonds, currencies and commodities) will increase in value.Bull Market:
When prices generally increase consistently, thus encouraging the bulls to buy.Bears:
Investors who believe a market will decline sharply in value. They may back up this belief by selling the securities they believe will decline.Bear Market:
When there is widespread pessimism about the future and prices generally decline consistently, thusencouraging the bears to sell. A bear stock market is usually defined as one that declines 20% from its high.
Correction:
When the market declines 10% from its most-recent high. This may signify what the name implies —a simple correction — or it can foretell a coming bear market.
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