Monday, February 26, 2007

Of Bears and Bulls

I'm the kinda person whose knowledge of all things fiduciary is non-existent! Today morning, while hubby was watching CNBC, there was this term that flashed across the screen and sounded rather funny to me...Bullish! Now what was that? When I asked him, he immediately took 'stock' of the situation, and in his characterestic style (he likes wearing the pedagogic garb every now and then) ,gave me a lengthy exposition on bulls, bears and other wild life stalking the stocks. For a financially challenged person such as your's truly, it was news that carnivores had migrated outside Animal Planet and National Geographic and wandered into CNBC.

But here's a gist of my new-found knowledge :-
Bears are cautious animals who don't like to move too fast. Bulls are bold animals who might
charge right ahead. An investor is said to be "bearish" if he or she believes the stock market
will go down. A "bearish" investor will buy stock cautiously. A "bullish" investor believes the
market will go up. He or she will charge ahead and put more money into the market. An investor can be bearish or bullish about a particular kind of stock.

Likewise, the term "bear market" describes a time when stock prices have been falling on the
whole. A "bull market" is a period when stock prices are generally rising.

On Wall Street, the bulls and bears are in a constant struggle. If you haven't heard of these
terms already, you undoubtedly will as you begin to invest.

Here's a pic of
"Bull and bear statues in front of the Frankfurt Stock Exchange"

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