Bull Market

A sustained period of rising stock prices, typically defined as a 20%+ gain from recent lows.

What Is a Bull Market?

A bull market is a sustained period of rising stock prices, generally defined as a 20% or greater increase from a recent low. During bull markets, investor confidence is high, the economy is typically expanding, and corporate earnings are growing.

Characteristics of Bull Markets

• Rising earnings: Companies consistently beat expectations.
• Low VIX: Market volatility decreases as confidence builds.
• Broad participation: Most sectors and stocks are rising, not just a few leaders.
• Increasing volume: More investors enter the market on optimism.

Earnings in Bull Markets

During bull markets, the beat rate tends to be higher (75%+) and the market rewards beats more generously. However, the expectations bar rises too — analysts raise estimates aggressively, making it harder for companies to surprise to the upside in later stages of the bull market.