What is a bull market?

📘 In Brief A bull market describes a prolonged period of rising prices in the financial markets, typically characterized by an increase of at least 20 percent from a low point. The term comes from the attacking bull, which thrusts its horns upward – symbolizing the upward movement. During this time, optimism prevails, investors buy more, and economic prospects are considered positive. Characteristic of this phase is a self-reinforcing cycle: rising prices attract new buyers, which drives prices even higher. At the same time, the fear of losses diminishes, and even bad news is often ignored or reinterpreted positively. A bull market usually ends when euphoria gets out of hand and valuations can no longer be justified by the real economy – often followed by a correction or a bear market. 🔍 Why This Matters A bull market refers to a prolonged period of rising prices in a financial market, typically defined as an increase of at least 20 percent from a low point. This movement is driven by optimistic sentiment, increasing demand, and growing investor confidence, often accompanied by solid economic data or expansionary monetary policy. The term originates from stock market language and symbolically represents the attacking bull, which thrusts its horns upward. In contrast to a bear market, which describes falling prices, a bull market is not strictly defined but is identified retrospectively based on the duration a …