Last month, your neighbor bragged about doubling his money in stocks. Your colleague started talking about mutual funds at lunch. Your phone buzzed with news about the market hitting record highs. Chances are, a bull market was quietly running the show.
What is a bull market? Simply put, it is a period when stock prices keep rising. Investors feel confident. People buy more shares. Companies report strong earnings. Jobs are plentiful. Money moves freely. Overall, the economy feels good.
The term comes from the way a bull attacksโthrusting its horns upward. That upward motion mirrors rising stock prices. A bull market typically begins when prices rise at least 20% from their lowest point and the good news keeps coming. It can last months or even years. When they end, it happens quietly, without warning, often when everyone is still celebrating. Smart investors don’t simply ride the bull market. They also prepare for when it stops running.