market corrections

Anatomy of Bears and Bulls

October 29, 2013

Bull markets are all unique in their own way. In the late 1990’s, companies didn’t necessarily need to earn money or have actual plants and equipment. They needed to have a webpage and rapidly growing sales. It was truly a bull market made of dreams. When it ended, those stocks that rose fastest crashed the hardest.

The boom that took hold after the tech bubble burst was the polar opposite. It was led by highly capital intensive businesses like oil and gas drillers, miners, homebuilders, engineering firms and others. No one wanted technology companies any more, as the pain from the last bust still lingered. (more…)