Bull market or bear market Essay Example | Topics and Well Written Essays - 250 words

Bull market or bear market - Essay Example Additionally, as the national income increases, so is the demand for stock is the stock market. Over the next two years, earnings by companies will increase substantially as the demand for goods and services within US increases. The rate of interest in US is low, which results in an increase in the value of stock. In other words, the rate of interest and the prices of stock have a direct relationship (Murphy 18). When the rates of interest are low, the earnings from bonds decreases, and the stock bec0mes more attractive compared to bonds. Another reason why there is a bull stock market is that many companies have fully recovered from the 2008 global financial crisis and are buying back their stock. The increase in the demand for stock grows the prices for the stock. As the number of companies that have fully recovered increases, so is the demand for the stock, thus the increase in their