What is a Bull Market?

Written by Charlotte Wood (last updated February 21, 2009)

A bull market is essentially a period of time when the market shows promise and the investors' optimism is consequently buoyed. A market infused with confidence makes it so investors want to buy more in expectation of future gain. The most famous bull market was during the 1990s when the entire world was on an investing high.

During a bull market, the market is often referred to as a bull run, when the market "runs" on success and optimism. During bull markets, investors buy and sell shares at higher prices and tend to make substantial amounts of money. The largest group of market investors who are a part of a bull market are commonly called a herd, usually fueling off of each other and making similar investing decisions.

Like its counterpart, the bear market, bull markets feed off of optimism and confidence. Most of what a bull market is comes from the attitudes of the investors; if the investors are confident then the market will have a greater tendency to do well. Bull runs need to be approached with some degree of caution however; with investors at financial and confidence highs, it's easy to lose your prudence, but this kind of market isn't destined to stay that way forever.

Guard your money well and make sure that you're still in control. Still watch the market for any inconsistencies that could prove threatening. Bull markets and great and give amazing success to almost any investor, but you do need to be careful and not too reckless with your monies and investments.

Author Bio

Charlotte Wood

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