Secular market


Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.

Secular Market

A market as defined by its overarching, long-term trends. Generally, a secular market refers to trends over a period of five or more years. A secular market may be bullish or bearish, and, in market analysis, takes precedence over opposite, short-term trends that happen within the secular market. For example, the Great Depression in the United States lasted from 1929 until World War II (certainly a bearish secular market). Even though some years saw significant GDP growth (including 14.2% growth in 1936), this did not prevent the secular market from being bearish. Thus, a secular market describes general trends in the market without regard for anomalous trends in the interim. See also: Cyclical market.

Secular market.

A secular market is one that moves in the same direction -- up or down -- for an extended period.

Benchmark indexes continue to rise to new, higher levels during a secular bull market despite some short-term corrections. Similarly, during a secular bear market, index levels decline or remain flat despite short-term rallies.

In addition, the average price-to-earnings ratio increases substantially during a secular bull market before reaching a top and falls during secular bear markets before hitting a bottom.

Secular markets tend to move in cycles, or predictable though not regular patterns, so that a secular bull market is followed by a secular bear market, which is followed by a secular bull market, and so on.

For example, the bull market of 1982 through 1999 followed the bear market of 1966-1981. The length of secular markets varies, from as few as 4 or 5 years to more than 20 years, though when one begins and ends becomes clear only in retrospect.

References in periodicals archive ?
Left Behind: The Movie really took the secular market by surprise when it sold over 3 million copies and became the #1-selling movie in America the week it debuted in October 2000," says Cloud Ten Pictures' VP of Entertainment, Byron Jones.
The decline in industry pickup sales is also affected by a secular market shift away from pickups, confirming that the timing and extent of a recovery in this key segment remain uncertain.
This year-over-year growth is the result of the continuing secular market increase in technically demanding environments where Camco's technology, quality products and services are primarily focused.
Analytic uses a quantitative approach based on the investment philosophy that using a disciplined and responsive process while adapting to secular market changes should deliver consistent returns over full market cycles.