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Bull Market

Moneyzine Editor
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Moneyzine Editor
1 mins
January 9th, 2024
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Bull Market

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

  • Dead Cat Bounce
    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.
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  • Bear Market
    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.
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  • Market Correction
    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.
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  • Market Trend
    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.
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  • Market Sentiment (Investor Sentiment)
    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.
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