SmartRateToolsDefinition
A bull market is an extended period where asset prices trend upward. A common rule of thumb is a rise of 20% or more from recent lows.
Common characteristics
- Rising prices and stronger investor confidence
- Improving economic expectations
- Higher appetite for risk assets like stocks
Investor behavior during bull markets
Bull markets can reward disciplined long-term investing, but they can also encourage overconfidence. Keeping a target asset allocation helps avoid taking unintended risk.
Practical takeaway
Participate in growth, but keep risk controls in place. Rebalancing and consistent contributions are often more reliable than trying to predict exact tops and bottoms.