Bull Market is (Bull Market คือ ,which is the term in Thai) a noticeable market trend. It is said that the market is in the “bull” phase when it is growing actively, with thrust. The best translation to the Spanish concept of the bull market would be a bullish market, which already has positive connotations, at the least in terms of real growth.
A bull market is characterized by a period of rising prices. It’s that simple. The beginning of a bull market is marked by widespread pessimism, at a point where, say, society tends to be “bearish.”
The metaphor of the bull is very suitable because, after the stage of pessimism, hope comes from the hope we go to optimism, and then there is some euphoria. The economic cycle continues, and probably after that euphoria, the tortilla is turned around again, reaching stagnation or, sometimes, a future new crisis.
Bull Market Phases
Several phases that define this type of market trend can be identified. Keep in mind that there is no way to set exact time limits, but that the trends themselves and the “market sensations” will define the transitions.
The accumulation phase is, say, before the upward movement. We would be in a bad period from investors and markets, in general, are in their minimum values.
In the stock market, investors sell because the news, in general, is bad, and that gives rise to the beginning of a moderate activity of prudent accumulation. What happens from this point is critical, if the activity continues in positive, we will move on to the next phase; otherwise, the market will remain stagnant or, in the worst case, falling daily.
The expansion phase is recognized when advances begin to be timid. Still, the rise in prices is consolidated steadily over time. In this phase, you can talk about a bull market with property, but you also have to be cautious: it is a long phase and is the most deceptive of the three.
The next phase would be the distribution, a phase of high activity in the market, in which prices rise dramatically, the market boils with the activity, the financial news is always positive, and the holders are plagued with Public operations of Sale.