bullmarket

A bull market is a financial market condition in which prices are rising or are expected to rise. It most commonly refers to the stock market but can describe any traded asset class, including bonds, commodities, and real estate. A bull market is typically characterized by sustained increases in broad market indices over an extended period, positive investor sentiment, rising trading volumes, and improving economic indicators. While definitions vary, a commonly cited threshold is a rise of about 20% from a recent trough, followed by continued gains, though there is no universally accepted standard.

Causes often include strong macroeconomic fundamentals such as expanding GDP, low unemployment, and controlled inflation, along with supportive monetary policy, favorable corporate earnings, and abundant liquidity. Improved confidence and breadth—where a broad range of stocks participate in gains—are also typical features.

Bull markets tend to last several months to years, but their duration and intensity vary with economic and policy conditions. They can be accompanied by elevated valuations and heightened risk-taking, as investors chase returns, sometimes leading to overvaluation and sharper corrections if conditions deteriorate. Periods of exuberance or excessive debt can precede a market reversal.

Bull markets are the counterpart to bear markets, in which prices fall and pessimism dominates. Investors and analysts watch indicators such as price action, volume, breadth, earnings data, and valuation measures to assess whether a market is entering or leaving a bull phase.