Bears and bulls are the popular names for two particular points of view among those who invest in stocks or commodities. The expressions are believed to come from the way the two animals attack. The bear attacks by sweeping its paws downward, and the bull attacks by tossing its horns up in the air. A bearish investor expects prices to fall and sells with the hope of being able to buy back at a cheaper price. A bear may also be an investor who has sold short, that is, sold a commodity or a security before having actual or complete possession of it. A bullish investor believes that prices are going to go up and buys in anticipation of a market advance.
When more people want to sell than buy, prices fall. This is called a bear market. When more people want to buy than sell, prices of stocks or commodities rise. This is called a bull market.
