Bear Investor

A Bear is an investor who believes that the prices in the market will decline. A Bear Market is one where prices are falling (e.g. if the GBP/USD rate is dropping). If the decline is expected to continue, the market would be 'bearish'. 'Bear' dates back London stock traders of the 1700s. It may stem from the adage "Don't sell the bearskin before you've caught the bear." This is roughly equivalent to "Don't count your chickens before they're hatched." which is what stock market 'bears' do. Anticipating declining market prices, they sell stock or currency they don't own yet, gambling that the price will fall by the time they actually have to buy it or deliver it, for a large profit.