oboloo Glossary

Bearish

oboloo Glossary

Bearish

Bearish Definition

When most people think of bears, they think of large, lumbering animals that are cute but dangerous. However, in the world of finance, a bearish investor is someone who believes that a stock or the overall market will go down in price.

Bearish investors may be reacting to news events that have caused them to lose confidence in a company or the economy as a whole. For example, if there is news of layoffs or poor earnings reports, a bearish investor would bet that the stock price will go down.

There are a few different ways to be bearish on an investment. One way is to short sell the security, which means selling it now and hoping to buy it back at a lower price later. Another way is to buy put options, which give you the right to sell shares at a certain price by a certain date.

If you’re thinking about investing in something but you’re not sure if it’s going to go up or down in value, you can always take a wait-and-see approach. But if you’re feeling confident that the price will fall, then being bearish could pay off for you in the long run.