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

Base rate

What's the base rate?
Read more

Value Investing

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

After-hours trading

Trading outside of a stock exchange's opening hours.
Read more

Junk Bond

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

Gross Margin

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.
Read more

Quantitative easing

Find out what quantitative easing is and how central banks use this monetary measure to encourage economic growth.
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

Year to Date (YTD)

A period of time that starts with the first day of the current calendar year and ends with today.
Read more

W-8BEN Form

Non-US individuals and businesses may have to file this form for the Internal Revenue Service (IRS), the US tax authority.
Read more

You’re just minutes away from commission-free investing

When you invest, your capital is at risk