Bear
BAIR
/bɛər/
An investor who believes a market or asset will fall in value; often used to describe a downward-trending market ('bear market').
A 'bear' is pessimistic about market performance and typically sells assets or 'shorts' them, expecting to profit from price declines.
The story behind the word. Similar to 'bull', the financial use of 'bear' is linked to the animal's attack method. A bear swipes its paws downwards, symbolizing falling prices. Another theory suggests it comes from 'bear-skin jobbers' who sold bear skins before they had actually caught the bear, essentially selling something they didn't yet own, similar to 'short selling' in finance.
Word relationships
- Pessimist: General term for someone negative; 'bear' is specific to market outlook.
- Seller: Someone who sells; a 'bear' sells with a specific expectation of falling prices.
- Bull: A 'bull' believes the market will rise, while a 'bear' believes it will fall.
Commonly confused with
- Bull: A 'bear' expects prices to fall (swipes downwards); a 'bull' expects prices to rise (charges upwards).
Word family
- Bearish (adjective): Pessimistic about market trends; tending to cause prices to fall.
Collocations
- bear market
- bear trap
- bearish sentiment
- bear investor
Idioms & expressions
- bear a grudge
- bear fruit
Example sentences
- "Despite some positive news, the financial pundit remained a bear on the overall economic outlook." Market sentiment
- "The global recession led to a prolonged bear market, causing significant losses for many investors." Market conditions
- "A true bear will often short-sell stocks, betting that their prices will drop." Trading behavior
Memory hook
Remember a 'bear' attacks by swiping its paws DOWN, so a bear market goes DOWN. Paws down
When not to use
Do not use 'bear' to describe a rising market; use 'bull' instead.
Fun facts
- The term 'bear market' is often defined as a sustained decline in market prices of 20% or more from recent highs.
Related words
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