Dear Group

I thought that it would be a good idea to set up a blog for the ICFE preparation course and I welcome relevant contributions that will help the group to share information and to communicate in English on a daily basis.

Using this blog should also cut down on the amount of paper content during the course!

If you have any problems using this blog please let me know.



Wednesday, 22 September 2010

Bull/Bear market

This was from the CUP online resources:
Bear market

Bear and bull

What is it?

A market condition in which the prices of securities are falling and widespread pessimism causes further falls in the market. As investors anticipate losses in a bear market, selling continues, which then creates further pessimism. Although figures can vary, a downturn of 20% or more in a share index, such as the Dow Jones or FTSE over at least a two-month period, is considered a sign that a bear market has begun.

Why is the term in the news?

In the US, commodities slumped as signs of slowing global growth sent an index of 24 raw materials into a bear market as crude oil, gold and silver tumbled and Asian markets have entered the worst bear market conditions in 35 years.
Discussion:
  • Have your country's financial institutions entered a bear market?
  • Is there anything a government can do to reverse a bear market?
  • How can a bear market affect a nation's economy?
  • What is the opposite of a bear market? (A bull market)

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