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What does a bull or bear mean?
The Beasts of the Finance World
What are Bear and Bull Markets?
Where did the term "bull" and "bear" originate from when describing market movements? Both animals are described to have incredible yet unpredictable strength, which also describe the stock market in terms of volatility.
A bear slashes their claws downwards, and describes a market that is declining. A market is considered a true bear when stock prices fall at 20% or more, which results in low investor confidence.
A bull thrusts their horns upwards, and describes a market where stock prices are consistently rising and the economy is expanding.
The two animals are also used to describe market sentiment. If investors expect an upward trend, then the sentiment is said to be "Bullish". On the other hand, if investors expect and downward price movement, then the sentiment is said to be "Bearish".
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ABOUT THE BLOGGER
Hi, I'm Ralph Gregore Masalihit!
An RFP Graduate (Registered Financial Planner Institute - Philippines).
A Personal Finance Advocate. An I.T. by Profession. An Investor. Business Minded. An Introvert. A Photography Enthusiast. A Travel and Personal Finance Blogger (Lakbay Diwa and Kuripot Pinoy).
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