What is a bull market?

A bull market is a period during which the stock market rises for an extended time and investor confidence is strong. Prices move in a clear upward trend and many shares increase in value. A bull market is often accompanied by economic growth and positive expectations about the future.

 

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In a bull market, optimism prevails and investors are willing to pay higher prices.

 

During a bull market, prices rise because companies report strong results or because investors expect profits to grow. When demand exceeds supply, prices increase.

 

Positive news can further strengthen confidence, encouraging more investors to enter the market. A bull market can last for months or even years and is often characterised by broad gains across multiple sectors. Like a bear market, a bull market is part of the natural economic cycle.

 

 




 

Short example:

 

Suppose a stock index stands at 1,000 points. In the following months, the index rises to 1,250 points. That is an increase of 250 points. 250 divided by 1,000 equals 25%. The market has therefore risen by 25%. If you had invested €1,000 in this index at the beginning, your investment would now be worth €1,250.

 


Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult a professional advisor when making financial decisions. The information and tips provided on this website are based on the personal insights and experience of our analysts and are intended for educational purposes only.

 

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