Who are bulls and bears?

Who are bulls and bears?

In markets, bulls are optimists who expect prices to rise, and bears are pessimists who expect prices to fall. Understanding these views helps you decide when to buy, hold, hedge, or stay on the sidelines.

Bulls – the optimists

Bulls believe the market (or a stock) will go up. They usually:

  • Buy (go long) to benefit from rising prices.
  • View good news and strong earnings as support for their view.
  • Prefer to buy the dip in uptrends.

Bears – the pessimists

Bears expect prices to fall or stay weak. They usually:

  • Sell or reduce exposure; advanced traders may short sell (higher risk).
  • Respond defensively to weak earnings, bad news, or economic slowdowns.
  • Focus on protecting capital.

Tip: Match your action to your conviction—size small, add gradually, and pre-define your exit.

Example: two views of the same stock

Investor X (Bullish): Expects better results and buys shares to hold.

Investor Y (Bearish): Expects weak results and reduces holdings or uses a hedge.

What if…

ScenarioBull reactionBear reaction
Market outlook is positiveBuys and holds; adds on dipsWaits for better entry; stays light or hedged
Economic data looks weakAccumulates cautiously at supportReduces exposure; may use puts/shorts
Market is volatileKeeps smaller positions; staggers entriesCuts risk; focuses on capital preservation

See also: Short selling (basics and risks)

Last updated: 08 Nov 2025