What Is a Bull Market?

The Balance Definition: A bull market is the condition of a broad market or a single market in which prices are continuously rising. Investors make money at any price at which they buy an investment because prices generally continue to rise.

The bull market is the type most desired for the majority of investors. If you are new to investing, it helps to understand what drives the bull market in order to take advantage of the opportunities available.

Investopedia Definition: A bull market is the condition of a financial market in which prices are rising or are expected to rise. The term “bull market” is most often used to refer to the stock market but can be applied to anything that is traded, such as bonds, real estate, currencies, and commodities.

Because prices of securities rise and fall essentially continuously during trading, the term “bull market” is typically reserved for extended periods in which a large portion of security prices are rising. Bull markets tend to last for months or even years.

The Motley Fool Definition: Broadly speaking, a bull market is a sustained period — usually months or years — when prices rise. The term is most commonly used in reference to the stock market, but other asset classes can have bull markets as well, such as real estate, commodities, or foreign currencies.

Usually, a bull market marks a 20% rise in stock prices, which follows a previous 20% decline and is followed by another 20% decline. As you can see from the chart below, there was a bull market that began in 2003 and ended when the S&P 500 hit its peak in 2007.

Enjoy!!!

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