A Bull Market is a phase of a business cycle when stock prices rise significantly over a sustained period of time. During a bull market, stock prices rise because investors expect that the future will be better than the past. In other words, they think that the future profits of the companies they invest in will grow. A bull market is part of a business cycle. The stock market goes through a series of bull markets and bear markets . During a bear market, stock prices fall because investors think that the future will be worse than the past. This can happen when companies do not meet their expected future profits. In other words, they think that the profits of companies will shrink.A bull market is called a bull market because it is like a raging bull. It charges ahead and you cannot stop it. Many people try to jump on the bandwagon and buy stocks because they think the bull will keep charging ahead and make them rich.How do you know when there is a bull market?1-It is easy to know when there is a bull market. First, you need to know what is happening with the economy. The economy goes through cycles of growth and recession. The economy can also expand or contract. If the economy is growing, then that is a signal that there is a bull market. This means that the stock market will probably be going up.2-You need to know what is happening with the business cycle. If the business cycle is in an expansionary phase (i.e., there are no major recessions), then that means that there is a bull market.3-You need to know what is happening with interest rates. Interest rates move up and down during the business cycle. When they rise, it means that there is a bull market.4-You need to know what is happening with the Federal Reserve. If the Fed is raising interest rates, that means there is a bull market.5-You need to know what is happening with inflation. If the inflation rate is rising, that means there is a bull market.6-You need to know what is happening with the stock market itself. The stock market changes perception of risk and return over time. It also becomes more or less risky over time. If the stock market is going up, then that means there is a bull market.
