Basics Intermediate: Understanding Bull and Bear Markets

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1.
One way to profit during a bear market is to buy the stocks of companies that perform well in both bull and bear markets. What are these stocks called?
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Defensive stocks. They can go by many names. The most common is "defensive stocks."
2.
What was the longest bear market in the United States?
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The Great Depression. By far, this was the longest bear market.
3.
Emotions can contribute to bull and bear markets.
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True. Aspects of investor psychology, such as emotions, can drive people to value stocks very high or very low.
4.
The net advance measures the difference between the number of stocks advancing in price and the number declining in price.
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True. From this comes the advance-decline line.
5.
Bull market investors seek _______ more than anything.
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Growth. Bull markets are about rising prices, and rising prices are what growth is about. Therefore, income and dividends are secondary.