By Admin 
Bull and Bear Stock Terms: If you follow the stock market, you must have heard things like ‘the market has become bullish’ or ‘investors are afraid of a bear phase’. Actually they have nothing to do with wildlife. In fact, ‘Bull’ and ‘Bear’ tell about the direction of the market, investors’ thinking and future prices. Let us know what is the meaning of these words and where did they originate from.
What is a bull market?
Bull market describes a situation where stock prices are rising or are expected to rise in the future. At such times, investors are ready to buy stocks in the hope of earning profits. Economic growth, strong corporate earnings, stable government policy and positive global cues generally support the bull market.
Actually, the bull always attacks by pushing its horns upwards. The upward movement in the stock market also reflects rising share prices and upward market trend. For this reason the word bull has been associated with growth in the financial market.
What is a bear market?
Bear market is the opposite of bull market. This indicates a phase where stock prices are falling or are expected to fall. At such times, investors sell stocks to avoid losses. Bear markets are often triggered by economic recession, financial crisis and geopolitical tensions as well as poor performance of companies.
The bear also always attacks downwards with its claws. It reflects falling stock prices and hence has been linked to financial market collapse.
Investor’s thinking behind bull and bear
Not only for the market but these words also show the mentality of the investor. Bulls believe that good days are coming and they are ready to take risks. Whereas bears expect trouble and focus on capital protection.
Where did the word bear come from?
The first known written mention of this word is found in Richard Steele’s 1709 publication ‘The Tatler’. Here he mentioned people’s ‘selling a bear’ which meant speculating on falling prices. With time, such traders came to be known only as bears.
Where did the word bull come from?
This word naturally emerged as an antonym of bear. Around 1714, the famous poet Alexander Pope used this term in the financial world. Many historians believe that the bull-bear pairing also became popular because of the bloody games like bull-betting and bear-betting.
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