Michael J Porro & Company

Financial Advisors, LLC

180 Old Tappan Road, Old Tappan, NJ 07675-7052

Phone: 201-768-0218

Fax: 201-768-6487

Website: porrofinancialadvisors.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, thus
encouraging 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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Michael J Porro & Company and LTM Client Marketing, Inc. are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

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