Bull Market

Definition

A period of broadly rising investment prices. For stocks, a rise of 20% from a recent low is a commonly used benchmark, although definitions vary.

The term usually describes a sustained advance in a broad market or a particular asset class. Prices can still fall for days or weeks during that period. When a headline calls a market bullish, check which index or asset it is describing and which starting point it uses.

Example

A broad stock index climbs from 1,000 to 1,200 over several months. That sustained 20% rise meets a common benchmark for a bull market.