What Is a Bull Market?

There are always opposites in life.

The financial market, including the stock market, is no exception.

In the stock market, there are opposites in the form of a bear market and a bull market.

We have already explored what a bear market is.

So, right now, let’s find out what a bull market means.

Just like a bear market, there’s no formal definition, but a bull market usually refers to a 20% rise in a market over time from its bottom.

The bull is used to describe an up market from the way it attacks its opponents — bulls usually use their horns to thrust an enemy upwards.

One of the best non-numeral indicators is rising investor optimism. During a bull market, there is a strong demand for stocks, and people tend to positive towards the stock market.

We should note that the starting date of a bull market can only be known in retrospect, usually after many months. This is because it’s challenging to accurately predict the change in market trends.

The current bull market that started in March 2009 is the longest in history. This can be seen from the chart below that shows the US’ S&P 500 index:  

When will this bull market end?

Your guess is as good as mine.

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