A bull market is when prices rise fast and confidence surges. Learn how bull markets build wealth.
The Basics of a Bull Market
Bull markets are exciting because stock prices race upward for months.
These periods can last years and make many investors happy.
During a bull market, prices often rise month after month. Even small dips are usually brief.
People who own stocks often feel confident and want to stay invested. Many see it as a good time to buy.
A bull market often means many new jobs and growing company profits.
People have more money to spend.
The 1980s and 1990s Bull Market
In 1982 one of the greatest bull markets began.
It lasted into 2000, almost 18 years long.
It more than tripled stock prices, with the Dow up over 1000%.
Many investors made big gains.
The 2009-2020 Bull Market
For example, the market hit bottom in 2009 after a recession.
It then rose for over a decade.
It became the longest bull market in history.
The S&P 500 gained about 330% by 2019.
The 2020-2021 Tech Rally
In early 2020 stock prices crashed by about 30%.
By late 2020 they were back up again.
Big tech companies led the recovery.
Amazon, Apple and Zoom helped lift markets.
The S&P 500 ultimately surged about 76% over one year from its low.
That was one of the best year-long runs since World War II.
Why It Matters
Now you know what a bull market is, you can look for one.
They mean rising prices and a strong economy for a while.
Bull markets can last years and create a lot of wealth.
But they don’t go up forever, so investors have to stay alert.
You can learn more about investing by reading about these trends.
Stay curious and invest wisely.
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