Glossary
Bull Market
A bull market is a sustained period of rising stock prices, commonly defined as a gain of 20% or more from a recent low.
Bull markets have historically lasted longer than bear markets and produced the majority of long-term stock returns, though they are only labeled with certainty in hindsight.
Why it matters in practice
Bull markets create their own risks: portfolios drift toward heavier stock weightings than intended, and long stretches of gains can inflate an investor's sense of their own risk tolerance. Rebalancing on a schedule — trimming what has grown and topping up what has lagged — is the standard discipline for keeping a portfolio aligned with its plan rather than with recent headlines.
Related terms: Bear Market · Rebalancing · Volatility · Risk Tolerance