Today Indian stock market tumbled due to slow industrial growth during July’2011. Indian Industry Production (IIP) number for July’2011 is 3.5% against an expectation of 6.1%. Now the trend is following steep downward, hence the panic among investors.
If market is falling, then it is called bearish or bear market. On the otherside, for a rally, its termed as bullish or bull market. I used to wonder, why these two animals are associated with stock market trends? Why not our king of forest Lion, Tiger or so? as usual I did googling…. This is the greatest ever invention…. all are addicted to it…Thanks to Google Inc. Here come the reasons…..
No one's quite sure how the two animals came to symbolize the market, but there are a few theories floating around. According to Motley Fool, a bear market earned its name because bears tend to swat at things with their paws in a downward motion (as in "the market's going down"). A bull market, on the other hand, got its name because bulls swing their horns upward when they strike (as in "the market's going up").
Another theory proposes that the animals' personalities are behind the symbolism. Bears move with caution, while bulls are bold and like to charge ahead. So a "bearish" investor thinks the market will go down, while a "bullish" investor thinks it's headed up.
Certainly no one can argue that both animals are intimidating and best avoided. Maybe they're meant to serve as a warning to investors: Unless you know what you're doing, you could be headed for pain.
Another theory proposes that the animals' personalities are behind the symbolism. Bears move with caution, while bulls are bold and like to charge ahead. So a "bearish" investor thinks the market will go down, while a "bullish" investor thinks it's headed up.
Certainly no one can argue that both animals are intimidating and best avoided. Maybe they're meant to serve as a warning to investors: Unless you know what you're doing, you could be headed for pain.
The fighting styles of both animals may have a major impact on the names. When a bull fights it swipes its horns up; when a bear fights it swipes down on its opponents with its paws. When the market is going up, it is similar to a bull swiping up with its horns. When the market is going down it is similar to a bear swinging its paws down. I hope this gives reasonable explanation. You can see the statues of these two animals as symbolic representation of market trends in front of Frankfurt stock exchange.
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