What does it mean to be Bullish or Bearish in the investing?
Investors call someone “bullish” if that person believes that stocks, or any other security for that matter, will go up,. They call a someone “bearish” if that person believes that stocks will go down. Market sentiment informs investors’ behavior, and it is ultimately important to understand how optimistic or pessimistic their outlook is.
A bearish investor, also known as a bear, is one who believes prices will go down. As with a bullish investor, investors can be bearish about either the market as a whole or individual stocks or specific sectors. Someone who believes, for example, that the stock of ABC Corp. will soon go down is said to be bearish on that company. An investor who foresees a market-wide dip in stocks, bonds, commodities, currencies or alternative investments like collectibles, is said to be bearish because he or she anticipates a sustained and significant downturn.
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