Bear

AAA

DEFINITION of 'Bear'

An investor who believes that a particular security or market is headed downward. Bears attempt to profit from a decline in prices. Bears are generally pessimistic about the state of a given market.

INVESTOPEDIA EXPLAINS 'Bear'

For example, if an investor were bearish on the S&P 500 they would attempt to profit from a decline in the broad market index. Bearish sentiment can be applied to all types of markets including commodity markets, stock markets and the bond market.

Although you often hear that the stock market is constantly in a state of flux as the bears and their optimistic counterparts, "bulls", are trying to take control, do remember that over the last 100 years or so the U.S. stock market has increased an average 11% a year. This means that every single long-term market bear has lost money.

VIDEO

RELATED TERMS
  1. Bear Tack

    A decline in the price of a stock, sector or market that may ...
  2. Bear Raid

    The illegal practice of ganging up to push a stock's price lower ...
  3. Ostrich

    A colloquial term that refers to the tendency of certain investors ...
  4. Honey Badger Stock Market

    A play on an Internet meme of 2011 made to relate to the stock ...
  5. Boom

    A period of time during which sales of a product or business ...
  6. Bull

    An investor who thinks the market, a specific security or an ...
Related Articles
  1. Confirming Price Movements With Volume ...
    Active Trading Fundamentals

    Confirming Price Movements With Volume ...

  2. Adapt To A Bear Market
    Investing Basics

    Adapt To A Bear Market

  3. Tiger Trading: Long-Term Charts For ...
    Forex Education

    Tiger Trading: Long-Term Charts For ...

  4. Market Mentalities: Bulls Vs. Bears
    Markets

    Market Mentalities: Bulls Vs. Bears

comments powered by Disqus
Hot Definitions
  1. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  2. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  3. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  6. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
Trading Center