Only long … no short?

”to blow, to swell up”— bhel— to sound, to speak, to roar.

Shiny, white.

The term “bull” in finance refers to an investor who believes that a particular security, market, or financial instrument is going to rise in value and may buy or hold securities in anticipation of future gains. The history of this term, along with its counterpart “bear” for investors who expect prices to fall, is rich and dates back several centuries, with several theories about their origins.

Theories on the Origin

1. Behavioral Comparison: One popular theory for the origin of the terms “bull” and “bear” relates to the animals’ behaviors. Bulls attack by thrusting their horns up into the air, which is a metaphor for the movement of a market going up. Conversely, bears swipe down with their paws, symbolizing a market that is on the decline.
2. Bearskin Jobbers: Another theory involves the early trading of bearskins during the 18th century in London. Middlemen who sold bearskins before actually owning them were known as “bearskin jobbers.” The phrase “selling the bearskin” referred to speculating on the price of the skins falling before they had to be delivered, which is akin to the modern practice of short selling. Over time, the term “bear” was applied more broadly to describe a pessimistic outlook on the market. It is speculated that “bull” was adopted as its optimistic counterpart, completing the pair of market sentiments.

Historical Usage

The use of these terms in financial contexts has been traced back to the 17th century, but they became more widespread in the 18th and 19th centuries as financial markets, including the London Stock Exchange and the New York Stock Exchange, became more formalized and their activities more publicized.

Symbolism and Culture

In financial markets today, the bull is a symbol of market optimism and economic growth. This symbolism is so pervasive that a bronze statue of a charging bull, known as “Charging Bull” or “Wall Street Bull,” stands in New York City’s Financial District as an iconic symbol of Wall Street and, by extension, the financial optimism and prosperity.

Bull Markets

A “bull market” refers to a financial market in which prices are rising or are expected to rise. The term is most often used in reference to the stock market but can apply to anything that is traded, such as bonds, currencies, and commodities.

The history of the “bull” in finance reflects not just the evolution of market trading, but also the human tendency to use metaphors derived from the natural world to describe complex concepts. This terminology has become deeply ingrained in financial language, illustrating the market’s sentiments and trends through vivid imagery.