A bull market is a sustained period of rising asset prices, characterized by widespread optimism, growing investor confidence, and expectations of continued gains. It is conventionally defined as a 20% or greater rise from recent lows in a major index or asset class. Bull markets can last months to years and are driven by strong economic fundamentals, accommodative monetary policy, and positive corporate earnings growth. During bull markets, buying on dips tends to be rewarded and speculative activity typically increases.
Example
“The S&P 500 entered a bull market in late 2023 after rallying more than 20% from its October 2022 lows, fueled by AI optimism and cooling inflation.”