Mustard Seed

DEFINITION of 'Mustard Seed'

In finance, this is an allusion to economic events that will 'bloom' into a bull market recovery. Reference to the mustard seed is rooted in the Bible, where there are several references to a very tiny seed that is commonly interpreted to represent the growth of Christianity around the world. Although the mustard seed is one of the smallest seeds in agriculture, it is able to grow into a large tree, sometimes in even the most adverse conditions.

BREAKING DOWN 'Mustard Seed'

This term was popularized in the context of the financial markets by Larry Kudlow of CNBC. He uses the term in the context of seemingly small pieces of positive news or events during bear markets (or other financial turmoil) that might be the small beginnings of a large positive turn for the better.