Definitions

Question 1

Define

“Secular Market”

Answer 1

• A secular market is a market that is driven by forces that could be in place for many years (10-30 years), causing the price of a particular investment or asset class to rise or fall over a long period.
• In a secular bull market, positive conditions such as low-interest rates and strong corporate earnings push stock prices higher.
• In a secular bear market, where flagging corporate earnings or stagnation in the economy leads to weak investor sentiment, stocks experience selling pressure over an extended period of time.