SHARETIPSINFO >> Articles Directory >>Bears – Attacking with Paws down

 

Share market is a place where ups and downs happen frequently. The investors are very keen in looking forward to the changes happening in the financial market. They tend to buy or sell shares as per the status of the economy. The unexpected variations in the economy make some people pessimistic while others remain optimistic.

There are mainly two types of financial market. The bull market makes the investors confident of their investment. They expect a growth in the economy and are readily awaiting the profit from their investments. This marks a growth in the financial market. Here the market grows at its fastest pace.

A bear market is a financial market where the status of the economy is just the opposite of what is happening in a bull market. Bear market faces a continuous decline with respect to economy. The investors are not happy in a bear market. They are diffident about the constant fluctuations happening in the bear market.

The investors in a bear market are known as bears. They believe that there is no security for their investment in a bear market. This makes them behave with a pessimistic attitude. They try to check if they can make profit from the declined market status. Commodity market, bond market and stock market are subjected to the strange behavior of bears.

Bears and bulls try to take advantage of the financial crisis in a bear market. Bears try to change declination in the broad market index to a profit that is acceptable for them. Bulls also try to take advantage of the conditions prevailing in the bear market by utilizing the bears.

There are no markets that are continuously a bear market forever. The vice versa case is also a fact. That means, every market is supposed to face a money loss however effectively the bears try to profit from it. Bears are facing a loss somewhere along the financial graph.

A constant monitoring of the economy gives rise to bears and bulls. When a negative symptom in the market is felt or negative reactions arise in the financial market, the pessimistic investors tend to act as if they are bears. They prepare to act as if they are bears. Bears attack with their paws and their head will be downwards. Bears are hibernating animals with their neck points down. This is why investors who are acting negatively are more clearly called bears. Bears are lazy animals and they are extremely cautious about their movements as well. All these are the reasons why the investors in a bear market are called bears.

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