Identified by investment advisory and asset management firm 4Thought Financial Group, ‘Eagle Markets’ are quantitatively defined as any period exhibiting trailing one-year returns of +30% or greater without an intervening 10% or greater downward price correction. Eagle Markets are inherently characterized by rapidly rising stock prices with low volatility.
The Four Market Cycles: Bear, Bull, Wolf, Eagle
It is important to note that based on these quantitative definitions of the Bear, Bull, Wolf, and Eagle environments, markets can overlap with each other. With the exception of Bear markets, the other three market types can occur simultaneously. In effect, based on this “overlapping” set of definitions (which have been used to preserve the traditional mutually exclusive definitions of Bull and Bear markets), our newly identified Wolf and Eagle markets can be viewed as subsets or components of the traditional Bull market.
To learn more about “Eagle” and 'Wolf' markets, in addition to the traditional “Bull” and “Bear,” and how select investment methods tend to perform in each environment, Download The Analysis by 4Thought Financial Group CIO Jesse Mackey.