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. Bear Market

    A market condition in which the prices of securities are falling, ...
  3. Herd Instinct

    A mentality characterized by a lack of individual decision-making ...
  4. Bull Market

    A financial market of a group of securities in which prices are ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. ...
  6. Honey Badger Stock Market

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

    Adapt To A Bear Market

  2. Introduction To Swing Trading
    Trading Strategies

    Introduction To Swing Trading

  3. Digging Deeper Into Bull And Bear Markets
    Active Trading Fundamentals

    Digging Deeper Into Bull And Bear Markets

  4. Surviving Bear Country
    Active Trading Fundamentals

    Surviving Bear Country

Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  3. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  4. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  5. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  6. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
Trading Center