Bullish and bearish are two opposing market sentiments that investors use to describe their outlook on the price movements of a security. Here's a brief explanation of each:
1. Bullish:
- A bullish stance indicates a positive expectation for the price of an asset to rise in the near future.
- Bullish investors believe that the market or the asset's fundamentals are strong and will lead to an increase in value.
- They may buy the asset in anticipation of a price rise, hoping to profit from the upward movement.
2. Bearish:
- A bearish stance, on the other hand, reflects a negative expectation for the price of an asset to fall in the near future.
- Bearish investors believe that the market or the asset's fundamentals are weak and will lead to a decrease in value.
- They may sell the asset short, betting on its price decline, and profit from the downward movement.
In summary, bullish investors expect prices to rise, while bearish investors expect prices to fall. Both sentiments are crucial in the stock market, as they influence trading decisions and can lead to price movements themselves.