A trend is a general direction into which something is changing, developing, or veering toward. The term may also mean a fashion or craze, i.e., a fad. The verb ‘to trend’ means to develop or change in a general direction. In the world of social media, if something trends it is the topic of many posts.
In the world of business, a trend is a pattern of gradual change in a process, output, or condition. It is an average or general tendency. If I say: “There has been a trend towards shorter-term mortgages,” it means more people are now taking shorter-term mortgages. In other words, there has been a tendency towards shorter-term mortgages.
The Financial Times’ glossary of terms – ft.com/lexicon – has the following definition of the term:
“The general way in which a particular situation is changing or developing.”
Etymology of ‘trend’
Etymology is the study of the origin of words and how their meanings evolved.
The Online Etymology Dictionary says the verb ‘trend‘ emerged in the English language in the 1590s. At the time, it meant “to run or bend in a certain direction (of costs, rivers, etc.).”
It came from the Middle English word ‘Trenden,’ which meant “to revolve, turn, roll about.” ‘Trenden’ came from the Old English word ‘Trendan,’ which meant “roll, revolve, turn around.”
The Old English word came from the Middle Low German ‘Trint‘ and Middle Low German word ‘Trent,’ which meant “boundary, ring.” Connections outside Germanic are uncertain.
The noun appeared in 1777 and meant “the way something bends.” It was not until the 1950s that the word also meant “a prevailing new tendency in popular fashion or culture.”
Markets
A trend in financial markets is a perceived tendency to move in a specific direction over time. In other words, a perceived tendency to move in a particular direction.
We classify these trends as secondary for short time frames, primary for medium time frames, and secular for long time frames.
We can only confidently determine trends in hindsight. This is because, at any time, we do not know what future prices will be.
Bull market
A bull market or bullish trend is a market that has the tendency to move upward, i.e., prices are rising. If an investor feels bullish, he or she expects, for example, share prices to go up.
Bear market
A bear market or bearish trend is a market that has the tendency to move downward, i.e., prices are falling. If an investor feels bearish, he or she expects share prices to fall.
Trendy
A trendy person is somebody who is very up to date or fashionable. We can also use the term for styles or things. For example, a trendy hairstyle is a fashionable hairstyle. Trendy clothes are fashionable clothes.
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Now, let's delve into the concepts presented in the article:
1. Trend:
- In a general sense, a trend is a prevailing direction in which something is changing or developing.
- In social media, when something trends, it becomes a popular topic with numerous posts.
2. Business Trend:
- In the business context, a trend refers to a pattern of gradual change in a process, output, or condition.
- It represents an average or general tendency, such as a trend towards shorter-term mortgages indicating a growing preference for them.
3. Etymology of 'Trend':
- Etymology is the study of the origin of words. The verb 'trend' emerged in the English language in the 1590s, initially meaning "to run or bend in a certain direction."
- The word evolved from Middle English 'Trenden,' which meant "to revolve, turn, roll about," and further traced back to Old English 'Trendan,' meaning "roll, revolve, turn around."
4. Financial Markets Trend:
- A trend in financial markets implies a perceived tendency to move in a specific direction over time.
- Trends are classified as secondary for short time frames, primary for medium time frames, and secular for long time frames.
- Determining trends confidently is typically possible only in hindsight, as future prices remain uncertain in real-time.
5. Bull Market:
- A bull market signifies a market with an upward tendency, where prices are rising.
- Investors who feel bullish anticipate further price increases.
6. Bear Market:
- A bear market indicates a market with a downward tendency, where prices are falling.
- Investors who feel bearish expect share prices to decline.
7. Trendy:
- Beyond financial contexts, 'trendy' describes a person, style, or thing that is very up-to-date or fashionable.
- For example, trendy clothes or hairstyles are considered fashionable.
By exploring these concepts, we gain a comprehensive understanding of trends in various contexts, from linguistic evolution to their pivotal role in financial markets and societal perceptions of what is fashionable or popular.
