Secular market


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

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 ?
But once they enter the secular market for labor to staff their secular, for-profit corporation, they may not force their religious choices on their employees, who are entitled to make their own 'personal decisions relating to marriage, procreation, contraception, family relationships, [and] child rearing."
"But once he enters the secular market for labor to staff his secular, for-profit corporation, he may not force his religious choices on his employees."
Once we understand the role of short cyclical moves within the context of longer-term secular markets, it becomes easier to put the regular declines in context.
She graduated from Oxford High School in Oxford, Mississippi in 1997, attained a Bachelor of Arts in Sociology with distinction from the University of Massachusetts in 2002, and a Master of Arts in Middle Eastern Studies from the University of Chicago in 2009 where she wrote her thesis on "Islamic Finance Regulation in Secular Markets."