What is a bull market?

We explain what a 'bull market' means

A bull market is generally defined by a 20 per cent rise in the stock market that takes place after a 20 per cent drop in the market.

This is not a precise definition and ‘bull market’ is often used to describe a situation in which investors are upbeat, putting a lot of money into stocks and think that the economy is going to perform well for the foreseeable future.

Though it’s usually used in the context of the stock market, ‘bull market’ can be used to describe almost any area of investment. You might have a ‘real estate bull market’ or a ‘bull market in the fine wine industry.’

The term ‘bullish’ is also derived from ‘bull market.’ To be ‘bullish’ about a particular stock, industry or market just means that you are confident that it’s going to perform well and increase in value.

‍

More terms

ESG investing

ESG is a hot topic right now for investors. Understand what ESG investing is all about and how you can use it to diversify your portfolio.
Read more

Holding Period Return

The amount of money generated by an asset during the time that it was held by an investor..
Read more

Yield curve

A graphical representation of interest rates over time
Read more

Unit Trusts

A collective investment scheme the investors pay money into in exchange for units. The money is invested in a diversified portfolio of assets.
Read more

Spot Rate

The currency exchange rate a bank quotes, valid with immediate effect.
Read more

Free Trade

The other free trade. International trade in which countries allow goods to flow across their borders without imposing import or export taxes.
Read more

Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.
Read more

Annualised Rate of Return

The average annual return an investor sees over a set period of time.
Read more

Dividends

Find out what dividends are and how they can contribute to the growth of your investment portfolio.
Read more

You’re just minutes away from commission-free investing

When you invest, your capital is at risk