Bull Market — The Dollar Dictionary

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Investment

Bull Market

A period when financial markets are rising or expected to rise, characterized by investor optimism and strong economic conditions.

A bull market is generally defined as a 20% rise from a recent low, sustained over at least two months. But the real definition is psychological: it's a period when optimism feeds on itself. Good news reinforces buying; buying pushes prices higher; higher prices feel like confirmation that the optimism was correct. This feedback loop can run for years.

The challenge is knowing when it ends. Bull markets don't die of old age — they die from overvaluation, rising interest rates, geopolitical shocks, or loss of economic momentum. The investors who do best are those who don't get greedy at the top and don't panic at the first sign of reversal.

A bull thrusts its horns upward — and that's exactly what a bull market does to prices. It's the season when investors feel invincible, when every headline seems positive, and when even bad companies see their stock prices rise just because the tide is coming in. Bull markets feel amazing to live through — until they end.

Real world: The bull market that ran from March 2009 to February 2020 was the longest in U.S. history — nearly 11 years. The S&P 500 rose over 400% during that period. Anyone who invested at the bottom and held through the decade became very wealthy. The danger? Bull markets make everyone feel like a genius, which leads to overconfidence and risky bets.

💡 A bull market is the rising tide that lifts all boats — just remember that tides always turn.

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