What is a Bull market?
A Bull market refers to periods of time during which the prices of assets rise consistently over time, usually by at least 20% from the most recent low.
This term is most commonly used to refer to the stock market but can apply to anything that is traded, such as bonds, currencies, and commodities.
Bull markets often coincide with strong economic growth and high investor confidence.
Recognising the characteristics of a Bull market can help investors to capitalise on rising prices by making strategic investment decisions.
For instance, during a Bull market, investors might increase their exposure to equities to benefit from potential gains.
Understanding Bull markets allows investors to take advantage of favourable economic conditions, potentially leading to significant financial growth and enhanced investment performance.
Bull markets are about a rising price environment, not by any means "in a straight line", as volatility is natural and there is always the chance that on any given day more investors are selling an investment, than buying it.
This would usually cause price drops, all part of the journey of any Bull market!
It is only if the price drops become substantial that there would be concern, as at some point a Bull market turns into a Bear market.