Bears
Bears are investors who believe that the market or a particular security is going to decline in value. They are the opposite of bulls, who believe that the market or a security is going to increase in value. Bears are typically short sellers, meaning they sell securities they don’t own in the hopes of buying them back at a lower price. Bears are also known as pessimists, as they are expecting the market to go down.
History of Bears
The term “bear” has been used to describe investors since the 1700s. The origin of the term is unclear, but it is believed to have come from the way bears attack their prey, by swiping down with their paws. This is similar to the way bears sell securities, by selling them first and then buying them back at a lower price. Bears are often seen as contrarians, as they are betting against the market.
Comparison Table
| Bulls | Bears |
|---|---|
| Believe the market will go up | Believe the market will go down |
| Buy securities | Sell securities |
| Optimistic | Pessimistic |
Summary
Bears are investors who believe that the market or a particular security is going to decline in value. They are the opposite of bulls, who believe that the market or a security is going to increase in value. Bears are typically short sellers, meaning they sell securities they don’t own in the hopes of buying them back at a lower price. For more information about bears, you can visit Investopedia, The Balance, and other financial websites.
See Also
- Bulls
- Short Selling
- Bear Market
- Bear Trap
- Bear Raid
- Bearish Divergence
- Bearish Engulfing Pattern
- Bearish Harami
- Bearish Reversal
- Bearish Momentum
