An investor who believes that a particular security or market is headed downward. Bears attempt to profit from a decline in prices. Bears are generally pessimistic about the state of a given market.
Investopedia Says:
For example, if an investor were bearish on the S&P 500 they would attempt to profit from a decline in the broad market index. Bearish sentiment can be applied to all types of markets including commodity markets, stock markets and the bond market.
Although you often hear that the stock market is constantly in a state of flux as the bears and their optimistic counterparts, "bulls", are trying to take control, do remember that over the last 100 years or so the U.S. stock market has increased an average 11% a year. This means that every single long-term market bear has lost money.
Related Links:
Stay calm, play dead and keep your eyes open for attractive valuations are just some of the tips we offer. Surviving Bear Country
Make sure you know the difference between a change in market outlook and short-term recovery. The Dead Cat Bounce: A Bear In Bull's Clothing?
Use this indicator to validate a change in price direction and moving averages. Volume Oscillator Confirms Price Movements
Find out what it means when investors are selling off their stocks for safer investments. Panic Selling - Capitulation Or Crash?
This sinister version of short selling tries to profit by generating fear in the market place. Find out how you can help prevent "short and distort". The Short And Distort - Stock Manipulation In A Bear Market




