Bearish Market
A bearish market is a condition in which stock prices are falling or expected to fall. It is the opposite of a bullish market, in which stock prices are rising or expected to rise. A bear market is typically associated with widespread pessimism and negative investor sentiment. During a bear market, investors may sell off their stocks in anticipation of further losses, leading to a further decline in prices.
History of the Term
The term “bearish” was first used in the 17th century to describe a market in which prices were falling. The term was derived from the behavior of bears, which are known to attack their prey by swiping downward with their paws. The term “bullish” was also derived from the behavior of animals, in this case bulls, which attack their prey by thrusting upward with their horns.
Comparison Table
| Bearish Market | Bullish Market |
|---|---|
| Stock prices are falling | Stock prices are rising |
| Widespread pessimism | Widespread optimism |
| Negative investor sentiment | Positive investor sentiment |
Summary
A bearish market is a condition in which stock prices are falling or expected to fall. It is the opposite of a bullish market, in which stock prices are rising or expected to rise. During a bear market, investors may sell off their stocks in anticipation of further losses, leading to a further decline in prices. For more information about bearish markets, investors can visit websites such as Investopedia, The Balance, and MarketWatch.
See Also
- Bullish Market
- Market Sentiment
- Market Volatility
- Technical Analysis
- Fundamental Analysis
- Market Cycle
- Market Risk
- Market Trend
- Market Psychology
- Market Efficiency
