A bull market is a financial market in which asset prices, such as stocks, bonds, and real estate, are rising or expected to rise.
This occurs when the overall sentiment and confidence of investors are optimistic about the future of the economy, leading to an increase in demand for securities.
Bull markets are typically characterized by low unemployment rates, increasing corporate profits, and a growing economy. Investors are willing to take on higher risks, such as investing in smaller companies or industries that may not have a proven track record. As a result, stock market indices like the S&P 500 and the Dow Jones Industrial Average usually experience prolonged periods of upward growth.
The term “bull” comes from the way in which a bull attacks by thrusting its horns upward. In a bull market, investors are optimistic and confident about the future, causing asset prices to rise as if charging upward like a bull.
