A market pessimist is an individual who believes that the stock market will decline in value. This person is often referred to as a 'BEAR' because they are expecting the market to go down, similar to how a BEAR swipes its paw downward. A BEAR investor typically sells stocks in anticipation of a price decline. They may also short sell stocks, which involves borrowing shares from a broker and selling them, with the expectation of buying them back at a lower price.