A bearish view is an investment outlook where a trader, analyst, or fund manager expects the price of a specific security, sector, or the broader market to decline in the near to medium term. Acting on a bearish view, an investor might sell existing long positions, buy put options, reduce equity allocation in favour of cash, or short-sell a stock or futures contract. Bearish views are typically formed when valuations are stretched, earnings expectations are deteriorating, macroeconomic headwinds are building, or technical chart patterns signal a trend reversal. Maintaining discipline—using stop-losses to cap losses when the view proves wrong—is essential.
For android only
