The term bullish is often used in different areas of the economic world, generally being useful when describing the behaviors of the most optimistic individuals who rely on the improvement of the situation and price increases.
In general, the bullish tends to believe that there is an upward trend of a particular variable. In this way, it assumes that the stock market or other economic activity in which it is a participant will show growth in the future.
It is commonly understood that a person has bullish behavior when he thinks that one or more assets will increase their value in the future. Under these same expectations this individual will decide to buy or acquire these assets. By definition, it is the opposite of bearish behavior.
Bullish in the financial markets
Depending on the market we are talking about, bullish acquires different connotations:
This adjective is also normally used in the field of interest rates . Specifically in situations where bond prices are expected to rise and, therefore, lower their rates according to the bullish point of view. Remember that in fixed income, the price and interest rate have a negative relationship.
On the other hand, in the stock market it is also a widely used term. When buying securities or shares of companies at the time they are at low prices, with the hope that these will rise later. The bullish subject is looking to acquire assets whose value increases to be able to sell them later and be able to obtain a profit or profit with this operation.
This type of situation can create situations of speculation and pressures that cause prices to increase without any other cause than the expectations created by these individuals who rely on the improvement of prices.
Bullish in the housing market
Another of the most frequent fields in which it operates with bullish practices is in the housing market. The properties are also assets capable of buying and selling and the search for benefits. Especially in certain periods such as economic crises and real estate bubbles where many opportunities appear.
In this sector it is common to separate the moments in “good to buy a house” or “bad to buy a house”. There are situations in which the bulls consider operating in the housing market based on different factors, such as the evolution of housing prices, real estate sales data or if construction is reactivated or paralyzed.