Bull V. Bear

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.

800px-Black_bear_(PSF)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.”

ox-clipart-illustrationBull 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.

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