Of a boom (frz. for "rise", spoken, of Nichtfranzosen "Hosse") or a bull market often also speaks one in a financial market, in which the prices of the instruments (shares) are understood continued in the rise.

The boom accompanies with a rising confidence of the capital investors as well as with expectations of future profits.

The opposite of the boom is the fall of prices or bear market, in which the market trend is understood in sinking.

Since the Second World War a boom lasts, just as a fall of prices, in each case at least two years. As also with a recession is easiest the trend to recognize, if it already past is. There are many theories with the goal of being able to estimate the respective market situation in time correctly.

Both the boom and the fall of prices can be due to speculation by fundamental economic circulations and. An excessive bull market can lead by exaggerated yield expectations to a speculation blister. On the other side an exaggerated fall of prices with falling expectations of the investors leads to a collapse of the stock market.

In the financial market expectations of the investors play a large role. Particularly the transitions between boom and fall of prices are difficult to interpret. Special attention should be directed toward positive or negative surprises. A succession of positive surprises often characterizes a boom, a succession of negative surprises a fall of prices.

see also: Case of bull

Articles in category "Boom"

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