Market Trends: Bulls vs Bears Analogy

We constantly hear that bulls have taken over the market or that bears come back from hibernation, but do we really know why we are talking about these animals to refer to market moves? Let’s explore this wild market together.

There are different theories about the origin of this picturesque description of the market. 

The most common one refers to the animal’s attacking style: bulls tend to use their horns to attack from bottom to top, describing a market upside swing; while bears use their front paws to attack from top to bottom, describing a market downtrend, as shown in the picture above.

Another theory dates back to the 18th century when the director of the Dutch West India Company built a wall to the south of the island where Manhattan is located today. This wall was intended to protect people from bears while keeping bulls from leaving the city.

A third theory connects to circus shows in antiquity. One of the most famous events was a fight between a bull and a bear.

That’s why we see a bull as the iconic monument of Wall Street. Spoiler alert: there isn’t a bear there because markets are designed to go up!