What is Bear..?

A Bear is an investor who strongly believes that a particular market or security is heading downward and tries to make a profit out of the decline in prices. They are usually pessimistic with regard to the state of a given market.

For example, in case an investor were bearish on the S&P 500, they would definitely attempt to make a profit from the decline in the broad market index. In fact, Bearish sentiments can generally be applicable to virtually all kinds of markets, including stock markets, commodity markets, as well as the bond market.Ads by Google

Even though, every now and then we hear about the stock market being constantly in a state of flux as the Bears alongside their optimistic counterparts dubbed Bulls, try to take control, it’s imperative for you to remember that over the past one century, the US stock market has been witnessing an average growth rate of 11 per cent every year. This essentially means that all long term market Bear have lost money due to their pessimism.

Edited and Updated 13th January 2014

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