What characterizes a bull market?

A bull market is characterized by rising prices, which often reflects investor confidence and a strong economy. In such conditions, the prices of securities, such as stocks, are on the rise or are expected to continue rising. This optimism encourages more investors to buy, adding further upward momentum to the market.

During a bull market, economic indicators, earnings growth, and other factors typically contribute to this positive atmosphere, and investors are more willing to take risks to capitalize on potential profits. The psychology of the market, characterized by high investor sentiment and optimism, further sustains the rising prices, making "rising or expected rising" prices the defining feature of a bull market.

Understanding this concept is crucial because it helps investors identify trends that can inform their buying and selling strategies.