Bull Market

Market Conditions

Quick Definition

A market condition characterized by rising prices and optimistic investor sentiment.

Detailed Explanation

A bull market is a period of generally rising prices for stocks or other securities. The term is typically used when prices have risen by 20% or more from recent lows. Bull markets are characterized by optimism, investor confidence, and expectations that strong results will continue. They can last for months or even years. During bull markets, investors are more willing to take risks, IPO activity increases, and economic indicators are generally positive. Understanding bull market psychology is crucial for maximizing gains and knowing when conditions might be changing.

Real Trading Example

The U.S. stock market experienced one of the longest bull markets in history from March 2009 to February 2020, with the S&P 500 gaining over 400%.

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