Pulling In Their Horns

AAA

DEFINITION of 'Pulling In Their Horns'

A collective shift by investors toward a less bullish stance after a substantial run-up in prices of financial assets. Since it involves a lesser degree of buying by investors, or even active selling by them, asset prices generally decline as investors pull in their horns in favor of a more bearish stance.

INVESTOPEDIA EXPLAINS 'Pulling In Their Horns'

The phrase is reportedly derived from the fact that because an upward market is called a bull market, investors "pulling in their horns" denotes a more cautious approach than rampant bullishness.


This change can either be a temporary phase, as investors re-enter the market after a price decline, or it may be the precursor to a protracted decline. In extreme cases when asset prices have increased especially sharply and valuations are extended, the period when investors pull in their horns may be the first sign of a impending bear market.




RELATED TERMS
  1. Bull Position

    A long position in a financial security, such as a stock in the ...
  2. Herd Instinct

    A mentality characterized by a lack of individual decision-making ...
  3. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. ...
  4. Bull Market

    A financial market of a group of securities in which prices are ...
  5. Bear Market

    A market condition in which the prices of securities are falling, ...
  6. Honey Badger Stock Market

    A play on an Internet meme of 2011 made to relate to the stock ...
Related Articles
  1. Investing Basics

    Adapt To A Bear Market

    Learn how your portfolio should evolve to suit bear market conditions.
  2. Trading Strategies

    Introduction To Swing Trading

    This style, between day trading and trend trading, may be a good one for beginners to try.
  3. Active Trading Fundamentals

    Digging Deeper Into Bull And Bear Markets

    Discover why it's important to know the characteristics of the two types of market conditions.
  4. Active Trading Fundamentals

    Surviving Bear Country

    Stay calm, play dead and keep your eyes open for attractive valuations.
  5. Technical Indicators

    What are the best technical indicators to complement the Positive Volume Index (PVI)?

    Discover several of the best technical indicators that traders and market analysts use in conjunction with the Positive Volume Index, or PVI.
  6. Technical Indicators

    What are the most common Bullish patterns used by traders?

    Learn about some of the most commonly recognized bullish candlestick chart patterns that traders use to identify market turning points and initiate trades.
  7. Charts & Patterns

    Trading Against the Grid and Away from the Herd

    The best trade could be in the opposite direction when a classic price pattern doesn’t behave according to perfect rules.
  8. Fundamental Analysis

    What due diligence steps should an investor undertake before each investment?

    Learn about the steps to completing vigorous due diligence when selecting an investment, including ownership by management, growth rates and downside risk.
  9. Technical Indicators

    What are the best technical indicators to complement the Negative Volume Index (NVI)?

    Explore other technical indicators that can be used when designing a trading strategy that incorporates the negative volume index.
  10. Trading Strategies

    How do I build a profitable strategy when spotting a Golden Cross pattern?

    Learn the primary trading strategies that traders and market analysts employ when they have identified the occurrence of the golden cross pattern.

You May Also Like

Hot Definitions
  1. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  2. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  3. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  4. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  5. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  6. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
Trading Center