Bull vs Bear Market: What's the Difference?
People feel optimistic; a bear market is the mirror image: prices fall for a long time.
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1.What is a bull market?
People feel optimistic; a bear market is the mirror image: prices fall for a long time.
2.What is the 20 percent rule of thumb?
A bull market is a rise of 20 percent from a low; there is no law behind it, only a habit of the trade.
3.Where does the name bear come from?
Traders who sold what they did not own yet were called bearskin jobbers; by 1709 bear was in print for someone betting on falling prices.
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Sources (4)
- Merriam-Webster, "The History of Bull and Bear Markets" (Wordplay); Etymonline, Eintraege "bearskin"/"bearish"
- Gaengige Branchendefinitionen: 20-Prozent-Faustregel (AllianceBernstein-Glossar u. a., Suchauszug)
- Federal Reserve Bank of St. Louis, FRED: S&P 500 (SP500), Tagesschlusskurse (Daten
- Eigene Rechnung: Rueckgang, Erholung, Leo
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