What Is Bull Market?
A bull market is a sustained period of rising stock prices, typically 20% or more from a recent low. Learn what drives bull markets and how to invest during one.
Definition
A bull market is a period of sustained rising stock prices, generally defined as a 20% or greater increase from a recent low. The term comes from the way a bull attacks -- thrusting its horns upward. Bull markets are characterized by optimism, strong economic growth, rising corporate earnings, and investor confidence.
Bull markets tend to last much longer than bear markets. The average bull market since 1928 has lasted about 2.7 years with an average gain of about 114%. The longest bull market in history ran from March 2009 to February 2020 -- nearly 11 years -- during which the S&P 500 gained over 400%.
During bull markets, the phrase "a rising tide lifts all boats" often applies: most stocks go up, making it easier (and sometimes dangerously easy) to feel like a brilliant investor. The challenge is maintaining discipline with valuations and diversification when everything seems to be going up.
Real-World Example
The bull market that began in October 2022 saw the S&P 500 rise from roughly 3,580 to over 6,000 by early 2026 -- a gain of more than 60%. Driven by artificial intelligence enthusiasm, strong corporate earnings, and a resilient economy, this bull market rewarded investors who stayed in the market through the preceding bear market of 2022.
Why It Matters
Most of your lifetime investment returns will come during bull markets. The key challenge is staying invested to capture those gains while not becoming overconfident. Many investors make the mistake of piling into risky assets late in a bull market (when prices are highest) and then panic-selling when the inevitable correction or bear market arrives. Understanding that bull and bear markets are normal cycles helps you maintain perspective and discipline.
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Frequently Asked Questions
How long do bull markets last?
The average bull market lasts about 2.7 years, but the range is wide. The 2009-2020 bull market lasted nearly 11 years. Shorter bull markets may last only 1-2 years.
Are we in a bull market right now?
Market conditions change frequently. Check the S&P 500's performance from its most recent significant low. If it has risen 20% or more without a 20% decline, it qualifies as a bull market.
Should I invest differently in a bull market?
Your core strategy should remain consistent regardless of market conditions. Continue dollar-cost averaging, maintain your target asset allocation, and avoid the temptation to chase performance or concentrate in a few hot stocks.
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