A bull market is a market condition in which the prices of securities, such as stocks, bonds, or commodities, are rising. It is typically characterized by a general increase in market prices, optimism among investors, and positive investor sentiment.
A bull market is typically defined as a rise of 20% or more from the previous trough in market prices. Bull markets can be caused by a number of factors, such as economic growth, falling interest rates, geopolitical stability, or market fundamentals.
Bull markets can be beneficial for investors, as they can lead to significant gains in their investments. However, they can also present risks, such as the potential for market bubbles or overvalued assets. Many investors use bull markets as an opportunity to review their portfolios and to make strategic investments in high-performing assets.