bearishness

Bearishness is the quality or state of expecting or emphasizing falling prices or negative outcomes. In finance and economics, it refers to a prevailing or anticipated downward trend in asset prices, markets, or economic indicators. The term derives from the metaphor of a bear, which attacks with a downward swipe, and is paired with bullishness, which denotes optimism and rising prices.

Bearishness can describe a market condition (bear market) or the sentiment of investors. A bearish outlook may be expressed as expectations that equities, bonds, or other assets will decline, or as a preference for protective strategies such as hedging or selling. Indicators of bearishness include falling price levels, negative earnings surprises, rising volatility (VIX), high put-option activity, and net selling by investors or funds.

In addition to markets, bearishness can characterize economic forecasts or individual decision-making. Some economists discuss sentiment as a driver of demand and investment; psychologists note how negative mood and cognitive biases influence risk assessment.

Bearishness is not a guaranteed outcome and can coexist with bullish signals. Markets can remain bearish longer than expected, or reverse into a bull phase. Distinctions exist between bearish sentiment (beliefs and outlook) and a bearish price regime (sustained price declines).