Why are there bear markets and bull markets in the stock market? What influenced their change?

Hello, bull market, also known as bull market, refers to the securities market with a long-term upward trend in price. The market is generally bullish, which is a long-lasting big market, characterized by ups and downs.

Take the recent bull market of A shares in 2007 as an example. From June 6, 2005 to June 6, 2007,10/6, the Shanghai Composite Index changed between 998.2-6 124.04, and the stock index rose for a long time, accompanied by a large number of stock price increases. Take Ping An Bank's share price as an example: the share price changes by 5.05-48.98.

The overall running trend of the characteristic bull market is upward, characterized by ups and downs, with more buyers than sellers.

Bear market, also known as short market, refers to the long-term downward trend of the securities market. The market is generally bearish, and it is a long-lasting plunge, characterized by small ups and downs.

Affected economic factors:

(1) enterprise profitability. Profit is the source of dividends (dividends) for enterprises. If an enterprise has more profits and more dividends to distribute, its stock buyers will increase and its stock price will rise, forming a bull market; On the contrary, if the profits of enterprises are less and the dividends available for distribution are less, the buyers of enterprise stocks will decrease, and the stock price will be bearish, forming a bear market. However, when investors evaluate stock prices, they are not based on the current earnings of enterprises, but on the future earnings of enterprises. At the same time, because there are many factors that affect the stock price, sometimes the change of enterprise profit has less influence on the stock price than other factors, and the change of stock price may be inconsistent with the current profit situation of the enterprise. ② National economic situation. Economic recovery and prosperity, industrial production increased, products sold well, and corporate profits increased. When investors are optimistic about corporate stocks, the stock price will rise. In the economic recession and crisis, the products are unsalable, the output is reduced, and the profits of enterprises are reduced or no profits, which weakens the attractiveness of stocks and makes the stock price bearish. ③ Interest rate changes. Interest rates fall, the interest burden of enterprises is reduced, profits are relatively increased, the attractiveness of stocks is improved, and the stock price is bullish. The decrease of interest rate reduces the loan cost, stimulates the increase of stock investment and speculation, and raises the stock price; On the other hand, the rising interest rate will increase the interest rate burden of enterprises and reduce the profits of enterprises, thus reducing investors' interest in buying shares of enterprises, leading to the decline of stock demand and price. Due to the increase in loan costs, it may also force speculators to sell stocks, prompting the stock market to fall. ④ Changes in the money supply. When the credit expands, the money supply increases, and even inflation occurs, the demand for stocks increases due to the increase of capital flowing into the stock market, which may cause stocks to rise. However, when the credit is tight and the money supply decreases, the stock market may fall because the stock market funds may decrease. Political factors mainly include: ① the influence of war. War will cause the stock market price of enterprises related to military industry to rise. At the same time, the war will destroy transportation and civil industrial production, and will also lead to a decline in the stock market prices of related enterprises. (2) regime change. The change of government leaders has a great influence on public psychology. Some people come to power, which will cause the stock price to rise, and some people will step down, which will cause the stock price to plummet. For example, 1963, the assassination of US President Kennedy caused the stock market price to plummet. ③ Other major political events. For example, 197 1, after American President R.M. Nixon announced that H. Kissinger would visit China, the Taiwan Province stock market fell for two consecutive days, and the stock index dropped by 7. 16 points from 148.62. technical factor

Refers to the influencing factors of the stock market itself. Mainly related to the influence of speculation, trading volume and trading mode:

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