What Are Stock Market Cycles?
The stock market cycle refers to the process of the long-term uptrend and long-term downturn of the stock market, which is a cyclical process. In layman's terms, the cycle of stocks' ups and downs, that is, the continuous replacement of bear and bull markets.
Stock market cycle
Right!
- The stock market cycle refers to the process of the long-term uptrend and long-term downturn of the stock market, which is a cyclical process. In layman's terms, the cycle of stocks' ups and downs, that is, the continuous replacement of bear and bull markets.
- A stock market cycle roughly goes through the following four phases: a bull market phase-a high consolidation phase-a bear market phase-a low leather market phase.
- The periodic movement of the stock market has the following important characteristics:
- 1. The cyclical movement of the stock market refers to the long-term trend of the stock market. It does not refer to the changes in the stock price index in the short term. The stock market rises and falls daily, which forms the basis of the cyclical movement of the stock market, but it cannot represent the stock market cycle.
- 2. The cyclical movement of the stock market refers to the movement of the stock market as a whole, rather than the contrarian movement of individual stocks and individual sectors.
- 3. The cyclical movement of the stock market refers to the reversal or reversal of the general trend, not the short-term or partial rebound or correction of the stock price index.
- 4. The cyclical movement of the stock market refers to the change in the nature of the stock market during the movement, that is, from a bull market to a bear market or a bear market to a bull market, rather than a simple quantitative change in the stock price index. The nature of a bull market and a bear market is different, but the stock market index may also decline in a bull market, and the stock market index may also rise in a bear market. The key depends on whether this number of changes can be accumulated to make the basic trend Change.