Wall Street Lingo Translated For most people trying to get a handle on the world of Wall Street, the task of working one’s way through the mass of available information is difficult enough, but when most of it comes with terminology that’s anything but obvious, the task can be overwhelming. With that said, here are a few plain English explanations to help you understand. Bubbles When the market averages appear to be rising well above historical valuation ranges, this is referred to as a bubble. The best-known bubble of recent decades was that of the dot.com era at the turn of the millennium. That was a time when concepts were viewed as more important than underlying progress in sales and earnings. Not surprisingly, the follow-up to the dot.com bubble was a decade in which the market averages gained little ground, allowing increasing corporate profits to climb sufficiently to return valuations to normal. Bull Market and Bear Market The acknowledged definition of these
Investment and economic observations by N. Russell Wayne, CFP, MBA. Mr. Wayne is the president of Sound Asset Managment, inc. and former Managing Editor of The Value Line Investment Survey.