What does 'bullish' mean on a stock?

You may have heard an investor or pundit describe themselves as "bullish" on a stock, a sector, or the economy in general, and it left you confused. Simply put, "bullish" means an investor believes a stock or the overall market will go higher. Conversely, "bearish" is the term used for investors who believe a stock will go down, or underperform.

What does it mean if an investor is bullish on a company?

When an investor is bullish on a company for the long term, it means they have a favorable view of the company's future. They may also believe the stock is currently undervalued at its current share price. The term could also be applied to a sector, industry, or the viability of a technology.

Should a market be bullish or bearish?

A market needs both bulls and bears in order to function. If everyone was bullish all the time at any price, nobody would sell their holdings. Bulls are trying to buy securities because they think they'll increase in value. Bears, meanwhile, expect they can find better returns elsewhere, and they want to sell some or all of their holdings.