A bull market is a market trend when investment market is increasing over longer period and is believed to increase in the future. Bull market is a well known term among investors and is opposite to bear market.
How to identify the bull market:
There is no exact definition for how long up trend has to continue to be assigned to bull market but a lot depends on investors’ confidence and psychology. If market is increasing significantly and investors believe it will continue to go up in the future, so it is a bull market. Some says that bull market starts when stocks bounce more than 20% from the bottom.
How to profit from it:
It is much easier to profit from bull market than from bear market. When bull market prevails most of the investments are increasing in value: stocks, property investments, commodities, junk bonds (depending on other market conditions).
The most natural way to profit is to buy some stocks if you believe bull market is coming. If you want to bet more, you can buy more volatile stocks as growth stocks in emerging markets. There are even riskier decisions possible as derivatives or margin trading, but you should avoid of such speculations because never know when bull market is going to end.
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