What does bearish mean?

**Bearish** refers to an market sentiment or outlook that expects a decline in prices, particularly in the stock market. It involves a pessimistic attitude towards financial instruments, such as stocks or commodities, indicating a belief that their values will decrease in the near future.

1. **Definition and Origin**: The term "bearish" is derived from the proverb "to sell the bear's skin before one has caught the bear," which advises against selling assets before they are actually lost. In essence, it suggests that one should be cautious about betting against the market without a clear rationale.
2. **Market Impact**:
- **Stock Market**: A bearish sentiment can lead to a sell-off as investors rush to reduce their exposure to assets they believe will decline in value. This can result in a downward spiral of selling, further accelerating price declines.
- **Economic Indicators**: Bearish sentiment can also influence economic indicators, such as oil prices, where a bearish outlook might lead to expectations of decreased demand and subsequent price declines.
3. **Investor Behavior**:
- **Investors**: Bearish investors are those who anticipate a downturn and may sell their positions or hedge their bets to mitigate potential losses.
- **Analysts**: Analysts may provide bearish forecasts or recommendations when they believe the market or specific assets are headed for a decline.
4. **Contrast with Bullish**:
- **Bullish** represents the opposite sentiment, where investors expect prices to rise due to optimism about the market or specific assets.

In summary, bearish indicates a negative outlook with potential implications for price declines, influencing investor behavior and market dynamics.