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

MORE FROM CHARLOTTE

Joining the Sedu Revolution

Sedu is an evolving and emerging style of hair that requires its own set of supplies, but it's rumored to make your hair ...

Discover More

Hiding Your Freckles

So many people have freckles, but you may not like yours. There are ways you can mitigate the effect of your freckles, ...

Discover More

Eyelash Extensions

Most men and women don't have luscious lashes, but eyelash extensions can give that illusion. Learn more about eyelash ...

Discover More
More Money Tips

What Are Penny Stocks?

You've probably heard the phrase penny stock thrown around without really knowing what it means. You'll soon find ...

Discover More

Getting Stock Quotes

It's easy to see how stock quotes could be confusing, but actually once explained, stock quotes are one of the easiest ...

Discover More

Understanding the Stock Market

The stock market is easily very confusing and if you don't know the basics, even more confusing. However, in order to ...

Discover More
Comments

If you would like to add an image to your comment (not an avatar, but an image to help in making the point of your comment), include the characters [{fig}] (all 7 characters, in the sequence shown) in your comment text. You’ll be prompted to upload your image when you submit the comment. Maximum image size is 6Mpixels. Images larger than 600px wide or 1000px tall will be reduced. Up to three images may be included in a comment. All images are subject to review. Commenting privileges may be curtailed if inappropriate images are posted.

What is 9 + 7?

There are currently no comments for this tip. (Be the first to leave your comment—just use the simple form above!)