The Stock Market and the Big Bull
In a big city called New York, there is a famous statue of a strong, bronze bull. This bull is a symbol for the stock market. The stock market is a place where people can buy and sell tiny pieces of companies, called “shares.” When lots of people want to buy shares and their prices go up for a long time, we call it a “bull market.” It’s like the bull is charging ahead!
Right now, in the year 2026, the bull market has been going for four whole years. That’s a long time! A smart group of people who work at a place called Goldman Sachs have been watching the market. They think the bull market is starting to share its good luck. Before, only the biggest, most famous company shares were going up fast. Now, shares of smaller companies and companies in other countries are starting to go up, too. This is called a “broader” market.
The smart people at Goldman Sachs thought about what might happen next. They shared three possible stories for the stock market.
- The Big Slide: In the first story, the prices of the biggest company shares could fall down a lot, very fast. This happened a long time ago with internet companies. The smart people don’t think this story is very likely right now.
- The Big Climb: In the second story, the prices of all the other company shares could jump up very high to catch up to the big ones. But the smart people said this story might not happen either, because many shares are already priced high.
- The Steady Grow: In the third story, which the smart people think is the most likely, all the companies start to make more money. When companies make more money, their shares become more valuable. This would help the bull market keep going strong in a healthy way.
So, the people at Goldman Sachs are watching closely. They think if companies keep making more money, the bull market can keep running, and more people can share in the good news!
Vocabulary Words:
- Market: A place where people buy and sell things.
- Shares: Tiny pieces of a company that people can own.
- Symbol: A picture or object that stands for something else.
- Valuable: Worth a lot, very important.
- Likely: Something that has a good chance of happening.
Comprehension Questions:
- What does the bronze bull statue in New York stand for?
A. A farm animal
B. A strong stock market
C. A big bank
D. The city of New York - How long has the bull market been going on in this story?
A. One year
B. Two years
C. Four years
D. Ten years - What is happening now that makes the market “broader”?
A. Only big company shares are going up.
B. Shares of smaller companies are starting to go up too.
C. The bull statue is getting bigger.
D. People are selling all their shares. - Which story do the smart people at Goldman Sachs think is most likely to happen?
A. The Big Slide, where prices fall fast.
B. The Big Climb, where prices jump very high.
C. The Steady Grow, where companies make more money.
D. The market will stop completely. - What happens to shares when a company makes more money?
A. They become less valuable.
B. They become more valuable.
C. They turn into money.
D. Nothing happens.
Answers:
- B
- C
- B
- C
- B
