Definition
The term bull market refers to a period of time during which there is an increase in the value of equities traded on a stock market. There is no widely accepted definition of a bull market in terms of duration or magnitude of the increase.
Explanation
While the most common reference to a bull market involves an increase to a broad measure of the stock market's performance, such as the S&P 500 Index or Dow Jones Industrial Average, the term can also apply to securities such as bonds as well as commodities. Bull markets are characterized by a growing sense of optimism, as the widespread pessimism associated with a bear market begins to dissipate. Investor confidence in the market returns, along with the expectation the market will continue to rise in the near to long term.
A bull market is oftentimes a leading economic indicator. That is to say, the start of a bull's run can be a precursor to the end of an economic recession.
Related Terms
The term dead cat bounce refers to a temporary increase in a financial market, or individual security, after a sustained decline. Oftentimes, the phrase dead cat bounce refers to the temporary recovery of a security deemed to be of low quality.
Moneyzine EditorNovember 6th, 2024
The term bear market refers to an extended period of time during which there is a decline in the value of equities traded on a stock market. While there is no strict definition, a decline of 20% or more in a market index would be considered a confirmation of a bear market.Moneyzine EditorNovember 6th, 2024
The term market correction refers to the downward movement of a financial market or individual security. A market correction is classified as a secondary trend, since they are usually short in duration.Moneyzine EditorNovember 6th, 2024
The term market trend is used to describe the upward or downward movement of a financial market over time. Market trends fall into one of three classifications: secular, primary, and secondary.Moneyzine EditorSeptember 20th, 2023
The term market sentiment is used to describe the prevailing attitude of investors towards a financial market or individual security. Market sentiment develops over time, and is based on a large body of information including both fundamental and technical factors.Moneyzine EditorNovember 6th, 2024
