Bullish vs Bearish Definition

While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service. Both bear and bull markets will have a large influence on your investments, so it’s a good idea to take some time to determine what the market is doing when making an investment decision. Remember that over the long term, the stock market has always posted a positive return. In a bull market, there is strong demand and weak supply for securities. In other words, many investors wish to buy securities but few are willing to sell them.

Whether your sentiment is bearish or bullish, one way to manage your investment portfolio is to work with a financial advisor. A bullish investor, for example, believes that the share price of XYZ Corp. will increase. The term can refer to asset classes like real estate or commodities and individual stocks, as well as broad market indexes such as the S&P 500 and specific industries.

1. U.S. stocks entered a bear market again in January 2022, as investors dealt with concerns over high inflation, rising interest rates and a possible recession on the horizon.
2. This entails bringing your portfolio’s complexing back to your intended asset allocation.
3. If you follow the stock market at all, you’ve probably heard plenty of references to bulls and bears.
4. Think of your investments as part of your overall financial plan and do your best to take a long-term view.

A bull market is a market that is on the rise and where the conditions of the economy are generally favorable. A bear market exists in an economy that is receding and where most stocks are declining https://www.forex-world.net/currency-pairs/gbp-zar/ in value. Because the financial markets are greatly influenced by investors’ attitudes, these terms also denote how investors feel about the market and the ensuing economic trends.

To say a trader is “bullish on gold,” for example, means that the trader believes the price of gold will rise. In the stock market, there are more restrictions on which stocks can be shorted and when. No matter the market, if someone says they are shorting, they believe the price will go down. One approach that can help you take advantage https://www.topforexnews.org/investing/best-5g-stocks-to-buy-in-2021/ of the market’s ebbs and flows is known as dollar-cost averaging. By making consistent contributions and investments over time, you’re able to buy more shares when prices are lower, and fewer shares when prices are higher. These contributions could be part of a workplace retirement plan like a 401(k) or your own traditional or Roth IRA.

Regardless of the current market we’re in, the standards of strong portfolios remain constant. The first thing you should have in order when it comes to investing is your ultimate financial goals. For most Americans, this principally includes retirement, along with vacations, buying a home and more. By defining your goals, you can make investment decisions based on them. Etymologists disagree on the exact origin of this term, however, it most likely has its origins as a foil to the term bear. While other theories circulate, this is the most generally accepted source of the phrase bull market.

Bearish Markets

Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information. If you’re “long” on a stock, it means you own it because you expect it to increase in value so you can profit. The origins of “bull” and “bear” as financial terms aren’t entirely clear, but there is a consensus among etymologists that “bear” came first. Someone on our team will connect you with a financial professional in our network holding the correct designation and expertise.

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This term can be used to characterize the forecast for any financial asset, whether specific stocks like Tesla or stocks as a whole. After being in a bear market since June 2022., the S&P 500 entered a bull market on June 8, 2023, after rising 20% from its October 2022 lows. Both the Dow Jones Industrial Average and the Nasdaq are also in bull markets, having entered them on Nov. 30, 2022, and May 8, 2023, respectively. People typically use the term when the stock prices and the market have increased in value over at least a few months.

A black candlestick is when a security closes below the opening price and the price at which it previously closed. A white candlestick is when a security closes at a higher level than where it opened. Someone who’s bullish may go long on the assets they’re bullish on. Alternately, they may just have best js framework for net mvc developer an opinion that the price will rise, but have decided against making any trades based on that opinion. Bullish stances can be extremely specific opinions about a single stock, or they can be broad opinions about the overall market. Essentially, it’s having a belief that an asset will rise in value.

This volatility can be extremely concerning for investors and those nearing retirement. The team here at InvestmentU is here to help you through turbulent times. Our content is filled with sound financial advice regardless of market conditions.

As a result, share prices will rise as investors compete to obtain available equity. In the investing world, the terms “bull” and “bear” are frequently used to refer to market conditions. These terms describe how stock markets are doing in general—that is, whether they are appreciating or depreciating in value. And as an investor, the direction of the market is a major force that has a huge impact on your portfolio. So, it’s important to understand how each of these market conditions may impact your investments.

Origins of Bullish and Bearish

The most severe bear market chopped 86% from the market’s value; it extended from Sept. 3, 1929 to July 8, 1932. It exists when the prices – normally the closing prices – of securities or indexes that track a set of securities, typically those of equities, rise. While not every stock will necessarily increase, the market’s main equity indexes will.

Someone who believes ABC Corp.’s stock will soon go down is said to be bearish on that company. A bullish investor, also known as a bull, believes that the price of one or more securities or indexes will rise. Sometimes a bullish investor believes that the market as a whole is due to go up, foreseeing general gains.

Bullish meaning

When someone is bullish, it means they are expecting prices to rise over a certain period of time. The term applies to broad market indexes such as the S&P 500, specific industries, entire asset classes such as real estate or commodities and even individual stocks. It might help to think of a charging bull raising its horns to remember that to be bullish is to expect prices to charge higher. In addition, investors may benefit from taking a short position in a bear market and profiting from falling prices. There are several ways to achieve this including short selling, buying inverse exchange-traded funds (ETFs), or buying put options. A market is usually not considered a true “bear” market unless it has fallen 20% or more from recent highs.