Bull Market
20%+ sustained market rise from recent low. Characterized by optimism, economic growth, and rising prices. Opposite of bear market.
What You Need to Know
Bull market is a sustained period of rising stock prices, typically defined as a 20%+ gain from recent lows. Characterized by investor optimism, strong economic data, and increasing corporate profits.
Historical bull markets:
- 1980s: 10 years, 400%+ gain
- 1990s: 10 years, 400%+ gain
- 2009-2020: 11 years, 400%+ gain
- 2020-2022: 2 years, 100%+ gain
Average bull market lasts 4-5 years and gains 150-200%. But timing is impossible—missing the best 10 days over 20 years cuts returns in half.
During bull markets:
- Stay invested (FOMO can drive prices higher than "fair value")
- Rebalance as stocks exceed target allocation
- Continue dollar-cost averaging
- Resist urge to over-allocate to stocks
Bull markets don't die of old age—they end from recessions, bubbles, or Fed tightening. But trying to predict the top usually means missing gains. Stay the course with your asset allocation.
Sources & References
This information is sourced from authoritative government and academic institutions:
- investor.gov
https://www.investor.gov/introduction-investing/investing-basics/glossary/bull-market
Related Calculators & Tools
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Related Terms in Investment
12b-1 Fee
Hidden mutual fund fee (0.25-1% annually) for marketing and distribution. Comes out of your returns. Avoid funds with high 12b-1 fees.
AUM (Assets Under Management)
Total market value of investments managed by an advisor or fund. Used to calculate 1% annual advisor fees—$500K AUM = $5K/year.
Alpha
Excess return above benchmark. Positive alpha = beat the market. Most actively managed funds have negative alpha after fees.
Bear Market
20%+ sustained market decline from recent peak. Characterized by fear, pessimism, and falling prices. Buying opportunity for long-term investors.
Beta
Volatility compared to market. Beta of 1.0 = moves with market. Beta of 1.5 = 50% more volatile. Measures risk, not return.
Dividend Yield
Annual dividend payment divided by stock price. 3% yield on $100 stock = $3 yearly dividend. Measure of income return.