Bull Market

A bull market is defined as a period in which a broad market index rises 20% or more from its most recent low and continues to trend upward. The term reflects the image of a bull charging forward with its horns raised.

Bull markets are typically fuelled by strong economic growth, low unemployment, rising corporate earnings, and positive investor sentiment. They can last anywhere from a few months to over a decade—the longest bull market in US history ran for nearly eleven years from 2009 to 2020.

While bull markets reward investors who stay invested, they can also breed overconfidence and lead to inflated valuations. It is important to maintain a disciplined, diversified strategy even during prolonged periods of rising prices.