How is the bull market formed? There are many factors that form a bull market, including the following aspects: economic factors: the increase in profits of joint-stock enterprises, economic prosperity, the decline in interest rates, the development of emerging industries and moderate inflation may push up the stock market price. Political factors: government policies, decrees or sudden political events may lead to stock price rise. The factors of the market itself, such as snapping up stocks, speculators shorting and buying stocks on a large scale, can all trigger a bull market.
What are the stages of the bull market? The first stage of the bull market coincides with a part of the third stage of the bear market, which often appears in the most pessimistic market conditions. Most investors are disheartened about the market. Even if there is good news in the market, they are indifferent. Many people start to sell all the stocks at no cost. Value speculation website reminds: farsighted investors, through the analysis of various economic indicators and situations, expect the market situation to change soon and begin to gradually choose high-quality stocks to buy. The market turnover gradually picked up slightly. After a period of time, many stocks flowed from blind sellers to rational investors. In the process of recovery, the market occasionally falls back, but the low point of each fall is higher than the last one, so it attracts new investors and the whole market becomes active. At this time, the operating conditions and performance of listed companies began to improve, and the increase in profits attracted investors' attention and further stimulated people's interest in entering the market. In the second stage of the bull market, although the market situation has obviously improved, the tragic decline of the bear market has left investors with a lingering fear. The market is in a stalemate, neither rising nor falling, but overall, the market has a good tone and the stock price is trying to rise. This period can last for several months or even more than a year, mainly depending on the severity of the psychological blow caused by the last bear market. After wandering for a period of time in the third stage of the bull market, the trading volume of the stock market has been increasing, and more and more investors have entered the market. Every decline in the big market will not only prevent investors from withdrawing from the market, but will attract more investors to join. Market sentiment is high and full of optimism. In addition, the company's good news is constantly coming out, such as doubling profits and mergers and acquisitions. Listed companies also take the opportunity to raise funds on a large scale, or send bonus shares or share split to attract small and medium investors. At the end of this stage, the speculative atmosphere in the market is extremely strong. Even if there is bad news, it will be regarded as a speculative hot spot and turned into good news. The share prices of junk stocks and unpopular stocks have risen sharply, while some stable high-quality stocks have been neglected. At the same time, the heat wave of stock trading has swept all corners of society, and all walks of life, men, women and children have joined the stock trading army.