The world of investing is filled with colourful jargon and phrases that may seem strange if you don’t know what they mean. A great example of this is a “Bull market” and a “Bear market.” These two terms refer to market trends. A Bull market means that the market is headed up and it’s time to make money. A Bear market means that stocks are headed down and it’s time to be careful. But where do these terms come from? That is a question that is harder to answer than you think. There doesn’t seem to be any consensus of the origins of these terms, but there are some solid leads.


Some link the origin of Bear and Bull to a book written in the 1700’s called Every Man His Own Broker by Thomas Mortimer. The book describes the tendencies of some investors and links them to bears and bulls. The bull, as described in the book, was someone who might purchase huge amounts of stock with little or no money at all and hope to sell the stock for a profit before the time to pay for it came due.



A bear, on the other hand, sold stock or property that he didn’t even own yet, and then would be forced to scramble to find a way to obtain the goods before he was due to deliver it.



There are some interpretations of the phrases which are much more logical. When a bull attacks, he will use his horns and swipe up to cause damage, while a bear will attack you with his paws and swipe downward.



There is also a group that believes the use of the terms dates back to bear trappers and the practice of bear skin salesmen selling skins they didn’t have yet at a particular price, hoping the skinners would come to sell their kill for a lower price, so that the salesmen could take home the difference. And since a one-time staging of bull and bear fights was popular, the term bull was given to anyone who didn’t practice this.



One final possible origin is related to the ways the animals charge, with bulls moving at high speed forward and bears moving slowing and cautiously.


While the origins of the bear and bull market may never be known, the stories surrounding them are just as colourful and fun as the terms themselves.

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