Financial pros often use animal-themed terms when talking bout markets‚ and the most well-known is the bull market - a time when prices go up big-time
The basic idea is simple: when any investment goes up by 20pc from its low point its called a bull market (which comes after a down-trend or bear market). Jason Hollands from Evelyn Partners says these up-trends start when smart-money folks see good deals; then others follow like sheep
Sometimes the momentum in a bull run elongates its duration as investors crowd in because of FOMO
Its funny but bad times often start good markets - like during covid-19 or the 08-09 crisis; thats when central banks step-in with their money-printing tricks
Right now were in a bull-market thats been running since oct-22‚ says Susannah Streeter from Hargreaves Lansdown. The market got super-charged by AI stuff‚ with seven big-tech companies leading the way. But history shows these things can end badly - just look at the 1920s crash or japans 1980s bubble
Here are some pro-tips for bull-market investing:
- Look at company basics not just rising prices
- Keep your cool when markets get crazy
- Mix-up different investments
- Watch out for tax issues
- Remember: what goes up must come down
The tricky part is knowing when its gonna end. Hollands says bubbles can pop fast - maybe from bad company news a bank mess or even weather problems. The main thing to watch is if stock prices are way higher than company profits; thats a red-flag