What does the term "bull market" refer to?

The term "bull market" specifically refers to a market condition characterized by rising prices, typically in the context of securities or financial assets. This phenomenon often occurs when investors are optimistic about the future performance of the market, leading to increased buying activity. The strong demand and positive sentiment can propel prices upward, which is the defining feature of a bull market.

In economic terms, a bull market generally signifies that the overall economy is healthy or gaining strength, as rising asset prices can enhance investor confidence and spending. This creates a self-reinforcing cycle where expectations of higher prices lead to more investments, further driving prices up.

Understanding the concept of a bull market is important for assessing market trends and making informed investment decisions, as it often indicates favorable conditions for investors looking to capitalize on rising securities values.