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

Real Estate Investment Trust (REIT)

An investment trust specialised in investing in commercial property such as parking garages or GP offices.
Read more

Money weighted rate of return

Learn what Money Weighted Rate of Return or MWRR stands for in finance.
Read more

Limit order

Learn what a limit order is and how to use it to make the most of your portfolio.
Read more

LSE

London Stock Exchange, which was founded in 1571 and now has a market cap of almost $5 trillion.
Read more

Synthetic ETFs

An ETF that that reproduces the return of an index through the use of swaps.
Read more

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.
Read more

SPAC

Find our what a SPAc or special purpose acquisition company is.
Read more

52-week high/low

The highest, or lowest, price a share has traded at in a passing year.
Read more

Accrued interest

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt
Read more

You’re just minutes away from commission-free investing

When you invest, your capital is at risk