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You must have come across these terms in any financial news. Wondered why these market derivations are termed after animals.
This is the reason:
It has to do with the way these two animals attack their targets.
Bull:
A bull will lower his head and push up with his horns in order to throw the offending target into the air. Thus, a bull market is one that is on its way up.
Bear:
A bear will swipe down with its claws in order to knock its prey to the ground. Thus, a bear market is one on the way down.
What will you call a hanging market?
Any guesses?
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May be Batmarket :)
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useful links:
1. http://www.investopedia.com/ask/answers/129.asp
2.http://financialphilosopher.typepad.com/thefinancialphilosopher/2007/10/allocation-2008.html
3. http://en.wikipedia.org/wiki/Bear_market
4. About.com
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