A bull market is a market condition characterized by rising prices and optimism. The common definition is a gain of 20 percent or more from recent lows. It can last months or years. Investors buy, prices rise further, and confidence feeds on itself. The opposite is a bear market, where prices fall and pessimism takes hold.

Bull markets are driven by economic growth, low interest rates, and strong corporate earnings. They can also be fueled by speculation. The late 1990s dot-com bubble and the 2020-2021 rally both had speculative elements. Not every bull market ends in a crash. Some fade gently. Others collapse suddenly. The timing is never clear in advance.

Bull markets reward patience. Investors who stay invested capture the gains. Those who try to time the market often miss the best days. Missing just a handful of strong trading days can significantly reduce long-term returns. The hard part is staying calm when prices are high and everyone is optimistic. Bull markets feel safe right before they end. That is what makes them dangerous. The average bull market lasts about three to four years, though some run much longer.

Common features

• Rising prices
• Investor optimism
• Strong economic growth
• Increased participation
• Eventual reversal