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Describing an opinion that is neither bearish nor bullish. Neutral option strategies are generally designed to perform best if there is little or no net change in the price of the underlying stock or index. See also Bearish and Bullish.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Of or relating to an opinion that a market will neither trend up or down in the near term. That is, a neutral analyst is neither bearish nor bullish; he/she believes that the market in question will remain roughly in its current value. Neutral analysts design neutral investment strategies, which are designed to perform the best if the market(s) in which one is investing do not move significantly. One example is a portfolio that is exactly half long and half short. See also: Market neutral.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
1. An investment opinion that is neither bullish nor bearish. A neutral opinion for an individual stock generally indicates the stock should not be purchased or sold.
2. Of or relating to an investment position that is likely to produce the best results if the market does not exhibit a major upward or downward movement.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.