What are the bulls and bears in the stock market
Wall Street has its own mythology. You often hear a commentator say that the bears are in charge or that the bulls have taken over. Analysts like to say they are "bullish" or "bearish" on the market or on a particular stock.
This has become so common that few people ever stop to explain what these terms mean. The meanings are simple and easy to remember. Investing based on them is another thing. In a bull market, stocks show a tendency to go up in price over a period of time. This period can be weeks, months or years. It's not an exact term. Instead, it refers more to confident sentiment among investors. In practice, it means the market has more buyers than sellers.
When demand exceeds supply, prices rise.
Bull markets are most common when the economy is growing, unemployment is low and inflation is somewhat tame. When someone says he is "bullish" on a single stock, he simply means he expects it to rise in price.
When you hear someone say we're in a bear market, she means stocks are headed down, in her estimation.
Stocks Basics: The Bulls, The Bears And The Farm
This means sellers outnumber buyers. A bear market can go on for years. If stocks go down for just a few days or weeks, the movement is usually called a "pullback" or a "correction. Some investors actually make money in a bear market by buying stocks at cheaper and cheaper prices in anticipation of them rising again.
Market trend - Wikipedia
A saying on Wall Street goes, "Bulls make money and bears make money. Even if someone is devoutly bullish, he takes calculated risks, not wild chances. Similarly, a bear is always ready to be proven wrong. Anyone who thinks he knows for sure where the market is headed can get too aggressive and lose money. Miners used to actually pit bears and bulls together in a fighting ring. In the United States, this was common during the Gold Rush era in California.
This bloody sport eventually was outlawed, but the symbolic strength of the two animals translated into modern Wall Street usage. As for the "up" and "down" parts, some claim this is a reference to the bull's tendency to slash upward and the bear's tendency to strike downward. The pigs are a modern addition by some unknown wit. Kevin Johnston writes for Ameriprise Financial, the Rutgers University MBA Program and Evan Carmichael.
He has written about business, marketing, finance, sales and investing for publications such as "The New York Daily News," "Business Age" and "Nation's Business. Each week, Zack's e-newsletter will address topics such as retirement, savings, loans, mortgages, tax and investment strategies, and more.
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Skip to main content. What Does the Bull and the Bear Mean in the Stock Market? More Articles What Does It Mean When the Market Is Oversold? What Makes the Over-the-Counter Market Different From the NASDAQ or the New York Stock Exchange?
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What Happens When the Dow Jones Average Drops? The Basis of Stock Prices. Bull Market In a bull market, stocks show a tendency to go up in price over a period of time. Bear Market When you hear someone say we're in a bear market, she means stocks are headed down, in her estimation. Pigs A saying on Wall Street goes, "Bulls make money and bears make money. The Source of the Names Miners used to actually pit bears and bulls together in a fighting ring.
References 6 Style Magazine: What Is a Bull and a Bear Market? When Will the Bull Return? Bulls, Bears Make Money, Pigs Get Slaughtered Northrop Grumman: What Do the Terms Bull Market and Bear Market Mean?
A Healthy Pullback or the Start of a New Bear Market? About the Author Kevin Johnston writes for Ameriprise Financial, the Rutgers University MBA Program and Evan Carmichael. Recommended Articles What Is OB on the Stock Market? Are ULIPs or Mutual Funds Better? Related Articles What Does the Fifth Letter of a Stock Symbol Mean?
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