What are bull and bear markets?

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David John Marotta
President, Marotta Wealth Management, Inc., Marotta Wealth Management, Inc.
http://www.emarotta.com  
434-244-0000

David John Marotta is the President of Marotta Wealth Management, a fee-only financial planning and asset management firm in Charlottesville, Virginia. He is an oft-quoted writer and speaker on financial matters and his weekly financial column can be found at www.eMarotta.com

What are bull and bear markets?

 

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Host: What is a bull market?

David John Marotta:A bull market is when the stocks are generally appreciating, they are going up by 10% to 20% every year and there in the outlook in the economy is good is good. So they continue to do that.

Host:What is a bear market?

David John Marotta: A bear market is when the stock market is going down. People think that the future is not going to be as good as it is now and so companies earnings are getting trimmed and they are not making as much as profit and so the markets are generally going down, trying to find where the valuation for the stocks is that is good

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