In investment terms, what is a "bull market"?

A "bull market" refers to a market condition characterized by rising prices, typically of stocks or other securities. This phenomenon indicates strong investor confidence and expectations that the prices will continue to rise, often driven by factors such as a growing economy, strong corporate earnings, or favorable market conditions.

In a bull market, the overall sentiment is optimistic, leading to increased buying activity, which further drives prices upward. Investors often interpret rising prices as a signal to invest more, contributing to the momentum.

This positive trend contrasts with other market conditions. For example, a bear market denotes a decline in prices, while high volatility refers to significant fluctuations in price, and a stable market suggests minimal changes. The definition of a bull market is specifically tied to the consistent increase in prices, making the recognition and understanding of this term essential for investors when assessing market conditions.