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

UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.
Read more

Net Income (NI)

The money a firm is left with from sales after subtracting taxes and different business costs.
Read more

Yield curve

A graphical representation of interest rates over time
Read more

Custodian bank

Learn what a custodian bank is.
Read more

Fundamentals

The data or information that is likely to impact a company's stock price.
Read more

Running yield

The annual interest payment (dividend) divided by the current market price of a bond.
Read more

Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.
Read more

Bull market

We explain what a 'bull market' means
Read more

Volatility

A measure of how much the prices of an asset or index vary over time.
Read more

You’re just minutes away from commission-free investing

When you invest, your capital is at risk