A Bull Market is a period in the financial markets when the prices of assets are rising or are expected to rise. This term is most often used to refer to the stock market, but it can be applied to anything that is traded, such as bonds, currencies, and commodities. The key characteristic of a bull market is optimism: investors believe that prices will continue to go up, so they buy more, which in turn drives prices even higher. Bull markets can last for months or even years, often coinciding with a strong economic performance, low unemployment, and rising corporate profits.
In a bull market, the confidence of investors and traders tends to be high, and this often leads to a positive feedback loop. As prices rise, more people are drawn into the market, further boosting demand and pushing prices up. They can lead to bubbles if investors become overconfident and begin to buy assets at prices far above their intrinsic values.
