A bull market is a period when stock prices are generally rising, and overall market sentiment is optimistic. This type of market is typically characterized by a sustained increase of 20% or more in a broad market index over a period of at least two months. During a bull market, investors are typically more willing to take on risk and invest in the stock market, anticipating continued growth and positive returns.
Investors in a bull market are often confident in the economy's strength and the prospects of the companies whose shares they hold. This increased investor confidence can lead to higher trading volumes and increased demand for stocks, which can push prices higher.
While a bull market can be a lucrative period for investors, it's important to remember that market trends can change quickly, and there's no guarantee that a bull market will continue indefinitely. As always, investors should carefully evaluate their investment goals and risk tolerance before making investment decisions.