A bull market is an extended stretch of rising prices and improving sentiment. There is no official threshold, though a rise of 20% or more from a recent low is the common shorthand. The name comes from the way a bull attacks, upward, with its horns.
Key takeaways
- Bull markets are identified with confidence only after the fact.
- Rising prices attract buyers, which is part of what keeps them rising.
- Confidence is the first thing to go when the trend breaks.