A bull market refers to a financial market, such as the stock market, in which prices of assets, particularly stocks, are on an upward trend over an extended period of time. During a bull market, investor confidence is high, and there is a prevailing sense of optimism about the economy and the prospects of various industries.
Key characteristics of a bull market include rising stock prices, increased trading activity, and a general feeling of positive sentiment among investors. This optimistic atmosphere often encourages more people to invest, further driving up prices. Bull markets can be fueled by factors such as strong economic growth, low unemployment rates, and favourable corporate earnings reports.
It’s important to note that a bull market is characterised by a sustained uptrend, typically lasting months or even years, rather than just short-term fluctuations. This contrasts with a bear market, where asset prices decline consistently over an extended period.