What is a bull market characterized by?

A bull market is characterized by rising prices and a general sense of investor confidence. During such periods, investors tend to feel optimistic about the market's future performance, leading to increased buying activity. This heightened demand typically results in prices climbing, creating a positive feedback loop where rising prices further encourage investment, thus sustaining the bull market.

The atmosphere during a bull market fosters a belief that economic conditions are favorable, and corporate profits are likely to increase, which enhances investor sentiment. In such a climate, confidence drives more and more people to invest, resulting in a cycle that promotes sustained growth in market prices.

Understanding the dynamics of a bull market is crucial for investors because it presents opportunities for profit through capital gains. Identifying these characteristics can also help differentiate a bull market from other market conditions, aiding investors in making informed decisions about their investment strategies.