What Is a Bull Market?
A bull market refers to a financial market in which prices are rising or are expected to rise. The term most commonly applies to stocks but can describe any asset class, including bonds, real estate, or crypto.
How Is a Bull Market Defined?
A widely accepted benchmark: a bull market begins when prices rise 20% or more from a recent low and is sustained over time. However, no universal official definition exists.
What Causes a Bull Market?
- Strong economic growth and low unemployment
- Rising corporate earnings
- Low interest rates that make borrowing cheap
- High investor confidence
How Should Investors Respond?
During a bull market, equities generally outperform. Investors often increase exposure to growth assets. However, valuations can become stretched — discipline and diversification remain important even when sentiment is positive.
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