The average bull market since 1932 lasted 3.8 years, far greater than the last.

A bull market is an extended period when prices for stocks or other assets are steadily on the rise, usually during the expansion phase in the business cycle.
Bull markets are usually accompanied by high investor confidence and a strong overall economy. 
Trying to time a bull market is harder than it looks, and most investors should stick to their long-term strategy and goals. 

If you’re at all interested in the world of investing, you’ll notice the phrase “bull market” comes up a lot in common parlance. “The bulls were out today,” says some strategist on TV or Twitter, and once again you wish you knew exactly what they meant. 

Let’s break down just what bull markets are, and what they mean for both institutional and individual investors.

What is a bull market? 

A bull market, also known as a bull run, is a long, extended period in the market when overall stock prices are on the rise. There’s no formal metric that defines a bull market. But one common rule of thumb is a 20% stock price increase from the most recent low, with signs that prices will continue to grow.

The term is most often applied to the stock market, as measured by the major indexes: the S&P 500, the tech-heavy Nasdaq, and the Dow Jones Industrial Average. But bull markets can apply to any market, from individual stocks to other assets such as real estate, bonds, and currencies.

A bull market is the opposite of a bear market, which happens when stock prices fall 20% from their latest peak. The nomenclature makes it easy to remember the difference: When provoked, bulls charge and are known for running at great speed, and so they became a symbol for a surging stock market. In contrast, surly, defensive bears are associated with hibernating — hence, it became an ideal metaphor for a declining or sluggish stock market. 

Note: Though a charging bull and a hibernating bear are useful images, bear and bull markets are thought to have gotten their names from the way they attack. Bears swipe down at their prey while bulls buck their heads up.

Key traits of a bull market 

Though the two don’t always move in strict tandem, bull markets …read more

Source:: Business Insider


A bull market means that stocks are rising, but it pays to understand how it works before you charge

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