What is a 'bull market'? Definition & meaning

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.

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More terms

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The amount of money a company would be left with by subtracting its liabilities from the value of its assets.

Profit and Loss Statement (P&L)

A statement that summarises firm's expenses, costs, and revenues incurred during a time period. AKA income statement.

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

S&P 500

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52-week high/low

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

Stock Exchange

A physical/digital place where stockbrokers and traders can buy and sell securities.

DMO

The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.

Value Investing

The art of buying shares which trade below their value, according to the analysis of the value investor.

Accounting standards

The rules a company follows when preparing financial statements.

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What is a bull market?