Word of the Day

bearish

Expecting the prices of shares to fall

In the stock market and the world of investment, there are two divergent mind-sets when engaging in trading. There are the Bears, who are sellers, and there are the Bulls, the buyers. To be bearish is to adopt a generally pessimistic view of the development of the market, anticipating a decline in stock value. Bears therefore enter the market with the intention to sell.



The antithesis of bearish is bullish, whereby investors fuelled by an optimistic streak believe that a stock price will increase. The belief in the ascendency spurs an entrance into the market with the intention to buy. The Charging Bull of Wall Street in Manhattan is symbolic of this aggressive pursuit of financial optimism. The reason behind these monikers follows the logic that a bull charges its horns upwards in attack, whereas a bear swipes its claws downwards.

It seems that a bearish market sentiment in 2017 could be the next zeitgeist, what with the uncertainty of the market following the triggering of Article 50 in Europe and Britain, the considerable drop in oil prices, and the unpredictability of the market following the introduction of President Donald Trump’s economic policies. Equity strategists forecast a bearish outlook for the remainder of the year, estimated as possibly the most bearish in over a decade.

bearish

1. expecting the prices of shares to fall
The market rose today, despite the fears of bearish investors.

1a. expecting the level of economic activity in general to fall
a bearish outlook on the US economy

2. a bearish market is one in which the prices of shares are falling

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Macmillan Dictionary

Macmillan Dictionary

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