Characteristics of Bull Markets
1. Rising Asset Prices: Bull markets differentiate by featuring times that last for longer where the prices of stocks, bonds, commodities, and other assets continue to rise.
2. Optimism and Confidence: Investors demonstrate bullish behavior, expressing their optimistic stance about the prospects of the markets and the state of the economy.
3. High Trading Volume: More often than not, trading volume rises during a bull market, when investors start buying stocks to ride the market up.
4. Economic Expansion: Investors generally prefer stocks during periods of economic improvement, such as low unemployment rates and growing confidence of consumers.
5. Positive Corporate Earnings: Adding to the favorable attitude, businesses, as a rule, demonstrate better earnings growth during the bull cycles.
6. Low Volatility: The bull markets tend to be rather stable with the market volatility being relatively low, as the investors feel safe basking on the upward trend.
7. Expanding Investor Participation: The bull market is an attractive opportunity for retail individual investors and institutional investors to participate in the search for potential gains among investors.