What is the difference between a bull market and a bear market?

The so-called "bull market", also known as bull market, refers to a big market that is generally bullish and lasts for a long time. The so-called "bear market", also known as short market, refers to a generally bearish market and a relatively long-lasting plunge. \ x0d \ x0d \ Dow Jones summarized the different market characteristics of bull market and bear market according to the empirical data of American stock market, and thought that bull market and bear market could be divided into three different periods. \x0d\ The first stage of the bull market. Coincidence with part of the third stage of the bear market often occurs in the most pessimistic situation of the market. Most investors are depressed about the market. Even if there is good news in the market, they are indifferent. Many people start to sell all their stocks at no cost. Forward-looking investors predict that the market situation will change soon through the analysis of various economic indicators and situations, and begin to gradually choose high-quality stock buyers. The market turnover has gradually picked up slightly. After a period of time, many stocks flowed from blind sellers to rational investors. The market occasionally falls back during the recovery process, but the low point of each decline is higher than the last one, thus attracting new investors to enter the market and the whole market becomes active. At this time, the operating conditions and performance of listed companies began to improve, and the increase in profits attracted the attention of investors, further stimulating people's interest in entering the market. \x0d\ The second stage of the bull market. At this time, although the market situation has obviously improved, the tragic decline of the bear market has made investors nervous. The market is in a stalemate, neither rising nor falling, but on the whole, the tone of the market is good and the stock price is trying to rise. This period can last for several months or even more than a year, mainly depending on the severity of the psychological blow caused by the last bear market. \x0d\ The third stage of the bull market. After a period of wandering, the stock market turnover has been increasing, and more and more investors have entered the market. Every time the big market falls, investors will not withdraw from the market, but will attract more investors to join. Market sentiment is high and full of optimism. In addition, the company's good news is constantly coming out, such as doubling profits, mergers and acquisitions. Listed companies also take the opportunity to raise funds on a large scale, or send bonus shares or split shares to attract small and medium-sized investors. At the end of this stage, the speculative atmosphere in the market is extremely strong. Even if there is bad news, it will be regarded as a speculative hot spot and turned into good news. The share prices of junk stocks and unpopular stocks have risen sharply, while some stable high-quality stocks have been ignored. At the same time, the heat wave of stock trading has swept all corners of society, and men, women and children from all walks of life have joined the stock trading army. When this situation reaches a certain level, the market will turn. \x0d\ The first stage of the bear market. Its initial stage is the last stage of the third stage of the bull market, which often appears in the highest investment atmosphere in the market. At this time, the market is absolutely optimistic, and investors are completely unaware of the changes in market prospects. There are all kinds of good news everywhere in the market, and the company's performance and profits have reached an abnormal peak. Many enterprises accelerated their expansion during this period, and news of mergers and acquisitions came out frequently. Just as most investors are crazy about the stock market, a few wise investors and individual large investors have begun to gradually withdraw their funds or wait and see. Therefore, although the transactions in the market are very hot, there are signs of gradual cooling down. At this point, if the stock price rises further, but the volume can't keep up, there may be a big drop. During this period, when the stock price falls, many people still think that this decline is only a callback in the process of rising. In fact, this is the beginning of the stock market crash. \x0d\ The second stage of the bear market. At this stage, the stock market will trigger "panic selling" as soon as there is a sign of trouble. On the one hand, there are too many hot spots in the market, and people who want to buy are hesitant because it is difficult to choose. On the other hand, more people began to sell in a hurry, which aggravated the sharp drop in stock prices. In the market where credit trading is allowed, speculators engaged in short selling are hit harder. They are often forced to sell because of the pressure to repay the integrated funds, so the stock price is falling more and more quickly and out of control. After a round of crazy selling and stock price plunging, investors will feel that the decline is a bit excessive, because the current situation and economic environment of listed companies have not reached such a pessimistic level, so the market will rebound and rebound. This mid-term rebound may last for weeks or months, and the rebound or rebound range is generally one-third to one-half of the total market decline. \x0d\ The second stage of the bear market. After a period of mid-term rebound, the economic situation and the prospects of listed companies tend to deteriorate, the company's performance declines, and financial difficulties appear. All kinds of bad news, which are difficult to distinguish between true and false, came one after another, further undermining investors' confidence. At this time, the whole stock market was filled with pessimism, and the stock price fell sharply after the rebound. \x0d\ In the third stage of the bear market, the stock price continued to fall, but the decline did not intensify. Because those stocks with poor quality have almost fallen in the first and second periods, it is unlikely to fall again. At this time, due to the collapse of market confidence, falling stocks are concentrated on blue-chip stocks and high-quality stocks with good performance. This stage coincides with the beginning of the first stage of the bull market, and investors with foresight and rationality will think that this is the best opportunity to absorb. At this time, they will buy low-priced and high-quality stocks and get rich returns after the market rebounds. \x0d\ Generally speaking, the time of a bear market is shorter than that of a bull market, accounting for only about one third to one half of that of a bull market. However, the specific time of each bear market is different because there will be great differences between the market and the economic environment. Looking back from 1993 to 1997, the Shanghai and Shenzhen stock markets in China experienced a sharp rise and fall, which was a complete cycle from bull to bear and then from bear to bull.