The story of bears and bulls in financial markets is a metaphor used to describe bullish and bearish trends in the prices of financial assets, such as stocks, bonds, currencies, among others.
The term "bull" is used to describe investors or traders who have an optimistic view of the market and expect asset prices to rise. This metaphor is derived from the behavior of the bull, which attacks by charging with its horns from bottom to top, symbolizing the rise in prices in the market.
On the other hand, the term "bear" is used to describe investors or traders who have a pessimistic view of the market and expect asset prices to decline. This metaphor is derived from the behavior of the bear, which attacks with its paws from top to bottom, symbolizing the fall in prices in the market.
The story of bears and bulls has its roots in 18th century England, when dog and bear fights were popular entertainment. During these fights, bears and bulls were used to confront each other in a fight, and bettors usually took sides with one of the animals.
Over time, this metaphor spread to the financial world to describe the struggle between buyers and sellers in markets. When bulls are in control, the market is said to be in an uptrend, with rising prices and widespread optimism. Conversely, when bears are in control, the market is said to be in a bearish trend, with declining prices and widespread pessimism.
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