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Compare and contrast a bear market and a bull market.
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- Stock prices rise in the long term
- Inflation is stable, controlled
- Interest rates decline
- Bond prices rise in inverse relationship to interest rates
- Economic indicators are strong and positive
- Stock prices fall in the long term
- Inflation rises quickly
- Interest rates rise
- Bond prices decline in inverse relationship to interest rates
- Economic indicators are weak and negative with recession and high unemployment
- Investors can still make money by wisely investing, e.g., in bonds during bear and stocks during bull markets.
- There are investments that defy the general trend (i.e., some stocks rise during a bear market and some fall during a bull market because stock price is still related to company performance within the market).
Elementary School Teacher
During a Bull market:
During a Bear market:
During both markets:
Posted by tjbrewer on May 21, 2013 at 3:08 AM (Answer #1)
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