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What is Bull and Bear in Stock Market?

We often come across people saying “The market is bullish” or “The bears have taken over the market”. But what do these bulls and bears say about the market?

Bears and bulls are used to indicate the situation of any type of market, not just stock markets. Bull markets indicate a financial condition in which prices are rising or will rise.

Whereas bear markets indicate a financial condition in which share prices are falling or will fall. Hence bears and bulls are two opposite sides of the market.

According to one of the theories, markets are called bearish or bullish because of the way they attack. A bull attack would thrust its horns “upwards” to make a kill while a bear would swipe its paws “downwards”.

For the stock market, a bear market is a result of low growth of the economy, which is expected to continue over a long period, pessimism in investors, and poor financial results.

However, opportunities are always found in adversities. Bear markets offer investors an opportunity to buy good stocks at discounted prices. Take a look at this video to know what stocks to buy in a bear market.

A bull market is an exact opposite. A bull market is all about optimism and better growth prospects. A bull market is a time for harvesting the gains whereas a bear market is for sowing the seeds.

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