Bull Market

In a Bull Market, typically the High Beta stocks are favoured and there is a general feeling or euphoria as momentum takes over and the Stock Markets rally.

A Bull Market is characterised by a market where prices are generally rising and sometimes rising rapidly. Market commentators start to consider mean valuations are becoming stretched as multiple expansion, such as the PE Ratios, gathers pace. As opposed to a Bear Market, market technicians tend not to have a specific percentage definition for a Bull Market. A Bull Market is surrounded by a generally optimistic outlook by investors, or “The Bulls” and the earnings estimates issued by analysts are generally being upgraded. During the Bull Phases in the Stock Market, typically the higher Beta stocks are favoured. A Bull Market can be described as either a Market Index or a Sector Index. In the later stages of the Bull Market, market momentum is the key driver.