Unpacking the Iconic Symbols of Wall Street: The Bull, the Bear, and Animal Spirits

Unpacking the Iconic Symbols of Wall Street: The Bull, the Bear, and Animal Spirits *NEW YORK CITY, NY* - As the world's premier financial hub, New York City's Wall Street is home to the iconic New York Stock Exchange (NYSE). Two of the most recognizable symbols associated with the NYSE are "The Bull and The Bear" and "Animal Spirits." But have you ever wondered where these terms originated? To understand the history behind these symbols, we must delve into the world of economics and finance. The terms "Bull" and "Bear" are thought to have originated in the early days of stock trading in London in the 18th century (Galbraith, 1990). A "Bull" market is characterized by rising stock prices and investor optimism, while a "Bear" market is marked by declining prices and pessimism. The use of these animal metaphors is attributed to the way each animal attacks its opponents. A bull attacks by thrusting its horns upward, symbolizing the upward trend of a bull market. Conversely, a bear attacks by swiping its paws downward, representing the downward trend of a bear market (Malkiel, 2003). The term "Animal Spirits," on the other hand, was popularized by John Maynard Keynes in his 1936 book "The General Theory of Employment, Interest and Money" (Keynes, 1936). Keynes used the term to describe the way investors' emotions and instincts can drive financial decisions, often leading to market volatility. In the context of Wall Street, "Animal Spirits" refers to the collective emotions and sentiments of investors, which can influence market trends and prices. This concept is closely related to the idea of "market psychology," which suggests that investor attitudes and behaviors can be just as important as fundamental economic factors in shaping market outcomes (Shiller, 2000). In conclusion, the symbols of "The Bull and The Bear" and "Animal Spirits" are deeply rooted in the history and psychology of finance. These metaphors serve as a reminder of the complex and often unpredictable nature of financial markets, where investor emotions and instincts can play a significant role in shaping market trends. *References:* Galbraith, J. K. (1990). A short history of financial euphoria. New York, NY: Viking. Keynes, J. M. (1936). The general theory of employment, interest and money. London, UK: Macmillan. Malkiel, B. G. (2003). A random walk down Wall Street. New York, NY: W.W. Norton & Company. Shiller, R. J. (2000). Irrational exuberance. Princeton, NJ: Princeton University Press.