Bull Market
Definition
A prolonged period where stock prices rise 20% or more from recent lows. Bull markets are driven by economic growth, optimism, and confidence. They typically last much longer than bear markets — the average bull market lasts about 4-5 years.
Why It Matters
Bull markets are where most wealth is built. The longest bull market in history ran from 2009 to 2020 (11 years), turning $10,000 into ~$50,000. Missing even the 10 best days in a bull market drastically reduces your returns.
Example
From March 2009 to February 2020, the S&P 500 rose over 400%. An investor who put $50,000 in an index fund at the start would have had roughly $250,000 by the end — just by staying invested through the entire bull run.