The traders' love of nature is widely known, and there are enough animal phrases to confuse the common spectator. While no one is certain where these animalistic words originated, it is believed that the bear was the first to appear.
This appears to have come from a hazy origin saying that was still extremely popular at the beginning of the 18th century: 'it is unwise to sell the bearskin before one has skinned the bear.'
The zoological gates were then opened, and additional animal language was paraded into trading. So, who exactly is who in the zoo? Here are a few examples of stock market spirit animals:
Bulls
Bulls used to specifically refer to an upward trending market or a growth cycle, but they can now simply refer to a bullish trader who frequently goes long. Some argue that the term "bull market" derives from the way bulls fling their opponents and spike their horns upwards, however, there is no solid evidence to support this assertion.
Bears
A bear market is the inverse of a bull market, as it is depressed and/or heading downward. Similarly, a bearish trader or investor is gloomy, whereas a bullish one is optimistic about a market.
Swans in black
Black swans, a concept that has gained popularity since Brexit, allude to a completely unexpected and surprising posture. The statement is called from an old adage that, theoretically, black swans must exist, despite the fact that only white ones have ever been observed (obviously, the creator of this phrase did not travel extensively). Black swans are as significant as they are shocking, and they must have a big (typically negative) influence on the market. Famous black swans include the dot-com bubble crash in the 1990s and the 2008 global financial crisis.
Whales
Whales are market power brokers (whether a trust, bank or a person) with so much money that their buys and sells generate ripples in the market like only massive animals can.
Doves and hawks
Unlike bulls and bears, traders' favorite two birds relate to the central bank's interest rate decisions. Those who favor higher interest rates and stricter monetary policy to combat inflation are referred to as 'hawkish.' A dovish approach holds that the central bank should keep interest rates low or flat. As the name implies, it is frequently an olive branch aimed at boosting economic growth in a weak market.
Unicorns
Unicorns are startups valued at $1 billion or more and are one of the newest phrases in the industry. They appear to be named for their scarcity and, maybe cynically, the impossibility of ever discovering one.
Tigers
Tigers are one of the few words derived from an acronym - TIGR, which stands for Treasury Investors Growth Receipt. Merrill Lynch bank designed and patented this sort of Treasury bond in the 1980s. Although they are now mostly obsolete, TIGRs were formerly popular due to the fact that holders did not have to pay interest or taxes on 'tiger' bonds.
Comments
Post a Comment