What is a bull market?

While the economic system is developing, unemployment is low, consumers are buying and investors are optimistic, the stock marketplace has a tendency to see extended profits. This is the essence of a bull market: Continued broad gains in stocks that last for a long period of time.

Technically talking, a bull market is described as a 20% gain or more in a stock market index or an individual security. Evaluation this with a bear marketplace, that’s a 20% or more loss in a given market or security.

Bull markets can last for numerous years. The longest inventory market bull run lasted for eleven years—it commenced in march 2009 inside the wake of the great recession and ended in march 2020 whilst the covid-19 pandemic shut down the global financial system.

While there are numerous different ideas on how the term bull market came to be, it’s commonly believed that it comes from how a bull attacks. A bull thrusts its horns upward while it assaults, so the term became adapted to describe inventory market boom.