A bull market or just a large cow wall painting. Obviously, this cow is miles away from Wall Street hanging out in a peaceful green pasture. A far cry from the stressful ups and downs of the stock market. We hear the terms bull and bear markets all the time on the nightly news. But what does that really mean and how did they get to be called bull and bear markets.
Large Cow Wall Painting
A bull market is market optimism. Meaning that investor psychology is optimistic or ‘bullish’ that the market will continue to grow or is headed in an upward direction. A bull market is generally considered a buyers market because stock prices are expected to rise. On the contrary, a bear market is market pessimism. Investors believe that the market will remain where it is or is headed in a downward direction. A bear market is generally considered a sellers market because stock prices are expected to drop.
To understand where the terms bull and bear came from just think about the animals. A bull will go crazy if provoked. It will chase anything in it’s path with speed and intensity. The bull moves fast and can be exciting to watch. A bull market is one that is moving, investments are growing and things are happening at a high pace. On the other hand, a bear is a more slow moving animal. It even sleeps for months at a time. A bear market is one that moves slow with periods of stagnation. Investments are not growing very fast, if at all, and they are hard to sell. Basically, the stock market can be a roller coaster ride with a lot of ups and downs. It’s better to be in it for the long run and to watch from the sidelines, or from green pastures, like this smart cow.