Singapore-based financial blog that aims to educate people on personal finance, investments, retirement and their Central Provident Fund (CPF) matters.

Monday, 10 April 2017

Why is it call a Bull Market and a Bear Market?

Ever wondered why is a dropping market call a bear market and why is a rising market call a bull market?
There is no 100% confirmed story, but the one we present below is one that has been highly circulated over the years.
Apparently, it has something to do with the bears and bulls attack their prey.
Think for a moment how these animals attack their prey.

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Bull Market
How does a bull attack its prey?
It charges at it, the uses its horns to thrust its prey up.
The prey getting swing upwards is similar to a rising stock market - upwards

Bear Market
How does a bear attack its prey?
It swings its 2 arms down at the prey.
The prey gets hits downwards, similar to a dropping market - downwards

Yes! This is true!
You can Google why is it call a bull or bear market, or we can save you the trouble and you can read it from Investopedia

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