ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What Causes Bull Markets. Bull markets generally take place when the economy is strengthening or when it is already strong. They tend to happen in line with strong gross domestic product (GDP) and a drop in unemployment and will often coincide with a rise in corporate profits.

Detailed explanation-2: -A bull market is a market that is on the rise and where the conditions of the economy are generally favorable. A bear market exists in an economy that is receding and where most stocks are declining in value.

Detailed explanation-3: -How to invest in bull markets: Bull markets provide ample opportunity for wealth creation. It is the ideal time to take advantage of rising prices by buying stocks earlier and selling them at higher rates. Losses in a bull run are minor, and the investor has a greater probability of earning returns.

Detailed explanation-4: -Bottom line. A bull market is a period of significant growth, and major stock indexes are typically used to measure bull markets, but the term can also refer to the growth of individual securities. Bull markets tend to last longer than bear markets and deliver returns that more than offset the losses in bear markets.

Detailed explanation-5: -About 36 percent said: “A new bull market may begin in the second half of next year (2023).” 21 percent said: “It may be 2024 before a new bull market begins.”