A bull market refers to a period in the financial market when the prices of securities, such as stocks, are rising or are expected to rise. In a bull market, investor confidence is high, and there is a general optimism about the economic outlook. There is a greater demand for securities, which drives up prices.
During a bull market, companies may experience increased profitability, leading to higher stock prices. Economic indicators such as strong GDP growth, low unemployment rates, and rising corporate earnings often accompany a bull market.
Investors in a bull market are more likely to take on risk and invest in stocks, hoping to capitalize on the rising prices. However, it's important to note that bull markets don't last forever, and there is always the potential for a market correction or downturn.