As the trade war of US President Donald Trump, the financial world is buzzing with complex-sounding conditions that can confuse everyday readers. From bears and bulls to dead cats and dips, there is a simple guide here – what they mean – and why they matter now.
Bear and Bull Bazaar
When shares like S&P 500 or Dow Jones fall from 20% or more recent heights, it is called a bear market. This name comes from the idea that tolerates the hibernate, a lot of rests like a market. On the other hand, an increase in stock prices in a bull market is described – as bulls move forward.
Dead cats boom
Sometimes stock can jump briefly after a sharp decline. It is known as a dead cat boom – a phrase that is based on a serious idea that a dead cat will bounce even if it falls from a great height. However, these recovery is usually short -lived.
Creator
Capitulation occurs when investors finally accept defeat, after looking at the prices, sell their shares with fear. This is a step made of nervousness, and although it can show that the market has hit its lowest point, people usually feel only later.
Recession
A recession occurs when the economy shrinks and unemployment increases.
A recession in the US has officially announced by the National Bureau of Economic Research. They see things such as jobs, income and factory production. They define a recession as a major decline in economic activity across the country that lasts for more than a few months.
The bureau often declares recession after a long time after it begins. For example, just before the latest US tariffs were effective, Goldman Sachs analysts increased their recession obstacles by 35% to 65%, only to draw back after the announcement of a stagnation of 90-day.
Buy dip
“Buy dip” is a phrase used by everyday investors. This means buying shares after a fall in prices, expecting to make a profit when they go back. But it is very difficult to know when the market is actually a hit down – even experienced investors find it difficult to get the time right.
10-year-old treasure note
10 -year -old treasury note is a bond that helps to show what is happening in the broad market. This is the interest that the US government pays to borrow money for ten years. When investors are worried, they buy these safe bonds, which reduces the yield. But if they start selling them – as they are recently – the yield increases, which may mean that the safest parts of the market are also losing confidence to investors.
