Definition of Bearish
By Dave Manuel
What does the term "bearish" mean as it applies to the world of investing and the stock market? What is meant by the term "bearish"?
If you believe that the market is going to go down, you are said to be a "bear". If you believe that the market is going to go up, you are said to be a "bull".
So, if you believe that the markets are set to move lower, you are said to be "bearish".
This also applies to individual assets as well, and not just the general market.
For instance - if you believe that Apple is set to drop by 25%, you are "bearish" on Apple.
The short of the long is that bears believe that something is going to drop in value, while bulls believe that it will increase in value.
For instance, let's continue to use the Apple example. Let's say that you are bearish on Apple. The reasons might include: competitive concerns, an expected downturn in the economy, valuation concerns. For some or all of these reasons, you believe that Apple is going to drop in value, which makes you "bearish" on Apple.
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