Bull Market V. Bear Market: Understanding the difference between two common financial industry terms
There is a lot of financial lingo thrown around, most of it is complex , but here are some cute/fun terms. Who know finance could be cute and fun right? Here is the quick and dirty regarding optimist and pessimistic market trends.
Bear market: Downward movement &/or investors have a generally pessimistic outlook regarding market expectations.
“Good grief, my portfolio is down. I’m losing a ton of money in this bear market.”
Bull market: Upward movement &/or investors have a generally positive outlook regarding market expectations.
“My portfolio is up; I’ve made a ton of money thanks to the bull market”
The expressions are said to have come from how the animals attack their prey. A bear swipes down while a bull thrusts upward. The terms are two fold as they each describe actual movement within the market &/or how investors are feeling.
The market may be doing really poor for stocks, but as an investor I might be “bullish” about a specific investment. Therefore, I can have a bullish outlook while we are in a bear market and vice versa.