Tavagapedia

Bull Market



Key Takeaways

  1. The bull market is a period of increasing price rates of stocks or assets.
  2. Bull Market occurs when the market is strengthening or is already at a peak level.
  3. The bear market means the market is facing a slowdown.
  4. In the stock market, a bull market is when its equity share prices are rising or expected to rise.

The bull market is a colloquial term to indicate a period of optimism in a financial market when the value of its constituents is consistently either going up or expected to go up.

Bull market meaning

Generally, the bull market is a period of increasing price rates of stocks or assets. Bull Market occurs when the market is strengthening or is already at a peak level. Common signs of the bull markets are the continuously increasing gross domestic product (GDP), reduction in the unemployment rate, and increasing purchasing power of the country. When an investor sees these signs, it boosts their confidence and prompts them to buy more and more securities in the stock market, which in turn increases the prices of securities. But it creates volatile conditions like for over a period of time demands will go up, but supply rate will not be able to cope up with the demand rate. In this market, many investors show a willingness to buy securities to earn more and more profits. 

What is bull and bear market

The basic meaning of the bull market is stocks are going up, that means things are going positive. The bear market means the market is facing a slowdown. In the bear market, stock values are going down. There is negative momentum in the market. The prices of securities or investment increase in the bull market, whereas in the bear market, it decreases. Most economists, analysts, and investors use both terms to describe the market situation. 

Example

In the stock market, a bull market is when its equity share prices are rising or expected to rise. The term can be applied to such runs in real estate, gold, and other commodity markets as well.

Know more

Since financial markets are volatile, a short-term rise in the markets should not be termed as a bull market; only growth for a sustained period in the market is a bull market. But traders have been known to jump to quick conclusions and use the term a little too soon.