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Definition

Bull Market

A market condition with rising prices, typically 20%+ gains from recent lows.

Written by Jere Salmisto·Reviewed by CalcFi Editorial·Last verified: 2026-05-13
TL;DR

Bull Market is A market condition with rising prices, typically 20%+ gains from recent lows. Used in investing.

What Is Bull Market?

A bull market is a prolonged period characterized by rising securities prices, investor optimism, and strong economic conditions. Bull markets are officially defined as a period where prices have risen 20% or more from recent lows. During bull markets, corporate earnings grow, employment strengthens, and consumer confidence increases, all driving stock valuations higher. Bull markets can last for years and create significant wealth, but they can also encourage overconfidence, speculation, and asset bubbles. History shows that bull markets are eventually followed by corrections or bear markets, so it's important to stay disciplined during euphoric periods and not abandon your long-term strategy.

Related Terms

Bear Market
A market condition where prices fall 20% or more from recent highs.

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