Every July around 1 million people gather in Pamplona, Spain for the annual San Fermín festival and the Running of the Bulls. Each morning for over a week thousands of participants run a half mile through the city with the bulls.

It’s fast, it’s intense, and it’s organized, but it also comes with big doses of chaos - much like the stock market. Ten years ago I crossed this off my bucket list with my two roommates from college (Doug and Rany).

Bulls

On my mother’s side I have Spanish roots. The Spanish have a long-standing cultural and historical appreciation for bulls. With the help of my research assistant, ChatGPT, I found some interesting reasons why.

Bulls generally have a distinct demeanor, they are relatively calm when left alone, but are also:

Protective: They can be highly protective of their herd, especially if young calves are around.

Curious: While they can be aggressive, bulls are also curious. They may approach new objects or situations cautiously but with interest.

Alert: Bulls are generally very alert and responsive to their environment, quickly reacting to perceived threats or changes in their surroundings.

Unpredictable: Bulls can be unpredictable, especially if they feel provoked or threatened.

Strong: Bulls are physically powerful and capable of quick, forceful movements.

If you’ve ever invested in the stock market you might have noticed it has similar characteristics.

Running WITH the Bulls

The Running of the Bulls has practical beginnings and a rich tradition. In the 13th and 14th centuries, cattle had to be transported from the Spanish fields outside Pamplona to the bullring in the city for bullfights. To move the bulls through the narrow streets, herders would guide them with the help of runners.

Over the years the annual event became a central part of the San Fermín festival, which honors Saint Fermín, the co-patron of Navarre. Everyone wears white, with a red sash, and drinks Coke mixed with red wine - it’s like a Where’s Waldo festival for adults. You have to see it to believe it.

The one thing I noticed the morning I ran with the bulls was that most of the local runners treated the run like a sporting event. They were stretching, warming up, focused, and prepared. There was tremendous respect for the bulls.

And when the gun went off and the run began, the best Spanish runners ran alongside the bulls - with the bulls, embracing their energy, not fighting it.

Bull Markets

Years ago when I became interested in the stock market I remember hearing the term “bull market” on TV all the time. Why do they call it that?

A "bull market" is a term used to describe a period of rising stock prices and general investor optimism. There are a couple of theories about the origin of the term: Bulls attack by thrusting their horns upward, symbolizing the upward movement of the market. And in medieval times, bulls were seen as symbols of prosperity and growth.

In contrast, a "bear market" is used to describe a period of falling stock prices and investor pessimism, as bears attack by swiping their paws downward.

Running with the Bulls and investing in the stock market have many similarities. Both involve elements of risk, excitement, and strategy. They reward participants who are prepared and respectful. They punish those who are not.

The very best at both share the unique ability to find the rhythm of the bulls and the trends of the markets. They run with the bulls, not against them.

Onward and upward, have a great week!

Brian Bond, CMT