101 Bulls and Bears in the Bond Market
Bulls and Bears in the Bond Market
Bear markets
Investors have names for markets of rising and falling bond prices. When interest rates rise and bond prices fall (by around 20 percent or more) or are expected to fall over an extended period, investors call it a bear market. In a bear market, bond traders tend to sell off their bonds to avoid falling values.
Things To Know
- Stocks and bonds may move in opposite directions.
Bull markets
In a bullish bond market, investors buy bonds to take advantage of an expected fall in interest rates and a rise in bond prices. They aim to buy low and sell high when bond prices increase.
Bears and bulls together
It is important to note that stocks and bonds may move in opposite directions. It is possible that when the stock market is bearish, the bond market may be bullish and vice versa.
