A bull market refers to a period in financial markets when the prices of securities, such as stocks, bonds, or commodities, are rising or are expected to rise. This upward trend is often driven by strong economic fundamentals, high investor confidence, and positive market sentiment. Bull markets can last for months or even years, providing favorable conditions for investors.
Key characteristics of a bull market include increasing corporate profits, low unemployment, rising consumer spending, and accommodative monetary policy. During a bull market, investors are generally more willing to take on risk, leading to higher trading volumes and increased market activity. While bull markets can present lucrative opportunities, they can also be followed by corrections or bear markets, highlighting the importance of prudent risk management and diversification.