A bull market is a period of rising stock prices and investor optimism. It’s characterized by a 20% increase in stock prices from recent lows. Bull markets have low interest rates, high investor sentiment, and positive economic indicators. They can be difficult to recognize and can last for years.

Bear markets, on the other hand, are marked by a 20% drop in stock prices and are associated with economic slowdowns. They tend to occur when consumer confidence falls and inflation rises. Bull markets are typically longer than bear markets, with the S&P 500 experiencing 11 bear markets since 1946.

One of the longest bull markets in history lasted from 2009 to 2020, with the S&P 500 soaring by over 400%. Examples of other bull markets include the post-World War II era, the Reagan years, and the 1990s dot-com era. Currently, the US is considered to be in a bull market since September 2025.

During a bull market, it’s important to consider your short- and medium-term needs and adjust your asset allocation accordingly. Dollar-cost averaging can help take the emotion out of investing and ensure consistent growth over the long term. Remember, it’s challenging to time the market, so focus on long-term growth.

Read more at Yahoo Finance: What is a bull market? Definition, examples, and investment strategies.