Even people who don't trade stocks must have heard of bull market and bear market, but as friends who don't hang out in the stock market, they may not know which is the rising market and which is the falling market, so Xiaobian will explain to you what is a bull market and what is a bear market, and by the way, the origin of the name of bull and bear market.
a bull market is a technical term for predicting a bullish stock market and an optimistic outlook;
a bear market is a technical term for predicting a bearish stock market and a pessimistic outlook.
There are many opinions about why it is called the origin of bull-bear market.
One is to use bull and bear to define the attack mode of the stock market from these two animals. Bulls usually raise their horns upward when attacking, while bears usually throw their paws downward when attacking, which is exactly corresponding to the market trend they represent. If the trend is upward, it is a bull market, if it is downward, it is a bear market.
however, one of the most widely recognized sayings in the industry is that the bear market comes from an old proverb in the 16th century: buy the skin before the bear is caught. It means not to be blindly optimistic. In the 18th century, investors began to sell stocks that they didn't have enough, in order to buy stocks at a low price during the delivery period, and make a profit from it, so the saying of selling bear skins was born. Then the person who buys the traded securities is called the bearskin buyer.
specifically, the word bull market was first used in the stock market in 1714, just after the word bear market was used. At that time, bullfighting and bear fighting were very common. When fighting bears, people would tie the bears in the arena and attack them with dogs or other animals to please the audience. At the same time, bullfighting was also very popular with the audience at that time. The popularity of bear fighting and bullfighting, coupled with the meaning of the word running the bull, made the bull and the bear become a pair in the stock field. Shortly after the bear market appeared, the bull market also appeared.
No matter what kind of statement it comes from, it has now become a technical term in the stock market, which affects the nerves of people in every financial market.