GlossaryStocks & Shares

What is Bull Market?

A financial market condition characterized by rising prices and widespread investor optimism.

A bull market is a prolonged period during which asset prices rise continuously, typically by 20% or more from a recent low, accompanied by broad investor confidence and economic optimism. The term derives from a bull's upward-thrusting horns. Bull markets are often driven by strong economic growth, low unemployment, and rising corporate profits.

During a bull market, investor sentiment is positive, and there is a general expectation that rising prices will continue. This often leads to increased buying activity and a willingness to take on more risk. Bull markets can last for years, as seen in the US stock market's long rally following the 2008 financial crisis.

ExampleThe S&P 500's sustained rise from March 2009 to February 2020, despite short-term dips, is considered one of the longest bull markets in history.

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