Secular Market

AAA

DEFINITION of 'Secular Market'

A market driven by forces that could be in place for many years, causing the price of a particular investment or asset class to rise or fall over a long period of time. In a secular bull market, strong investor sentiment drives prices higher, as there are more net buyers than sellers. In a secular bear market, weak sentiment causes selling pressure over an extended period of time.

INVESTOPEDIA EXPLAINS 'Secular Market'

Secular markets are typically driven by large-scale national and worldwide events, which occur in combination. For example, wars, demographic/population shifts and governmental/political policies are all events that could drive secular markets.

A secular bull market will have bear market periods within it, but it will not reverse the overlying trend of upward asset values. For example, most economists agree that U.S. equities were in a secular bull market from about 1980 to 2000, even though the stock market crash of 1987 occurred within the same time period. The losses from that bear market period were quickly recovered, and the market indexes continued to rise over the next 13 years. The Standard & Poor's 500 Index (S&P 500) rose from 120 to nearly 1,500 during this secular bull market.

RELATED TERMS
  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Business Cycle Indicators - BCI

    Composite of leading, lagging and coincident indexes created ...
  3. Bear Market

    A market condition in which the prices of securities are falling, ...
  4. Cyclical Industry

    A type of an industry that is sensitive to the business cycle, ...
  5. Kondratiev Wave

    An economic theory created by Soviet economist Nikolai Kondratiev ...
  6. Market Sentiment

    The overall attitude of investors toward a particular security ...
Related Articles
  1. Identifying Market Trends
    Active Trading Fundamentals

    Identifying Market Trends

  2. 10 Tips For The Successful Long-Term ...
    Trading Strategies

    10 Tips For The Successful Long-Term ...

  3. Are we in a bull market or a bear market?
    Options & Futures

    Are we in a bull market or a bear market?

  4. The Beginning Of A Bear Market?
    Economics

    The Beginning Of A Bear Market?

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center