Bulls Vs. Bears

No, we aren't talking sports.



On Wall Street, you will often hear the terms bullish or bearish or we are in a bear market vs. a bull market. So what is a bull and bear market?

There are several definitions of a bull and bear market, but rule of thumb a bull market is marked by an increase of 20% and a bear market is marked by a Decrease of 20% or more.

Bull markets are often marked by low unemployment, economic growth, and high consumer confidence; typically a bear market is the opposite- hello today's economy.

Where are we now? Unemployment is rising ( up to 5.5% from under 4.5% in 2007 ), the S&P500 is down YTD 16.32 and is floating around close to the 20% down mark since October, consumer confidence is hitting all time lows, gas and food prices are up, an election year, war in the Middle East and inflation is on a rise- just had its biggest jump since 1991!

But don't run for the hills yet-What does this mean for you Mr. Investor? If you have a long term outlook, then take a breath and relax, don't freak out when you get your June statements. The old addage, buy low, sell high...well, this is the WORST time to be selling, bc then you are actually taking a loss, bc once the market swings back, it will do so quickly and you don't want to be on the sidelines when it does- bc then you will be buying high. If you have any extra money, I would try to put it in the market. There is a lot of value out there right now, and don't worry even if you lose, it will be in the short term.