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Bull market

A bull market is associated where there is increasing investor confidence in the stock market, which in turn has a positive effect to encourage more investment which in turn motivates more investment in the markets in anticipation of higher future prices.

This often refers to a psychological state of investors, which almost always is the decided factor in more investments being made in the world financial markets. The upward trend in investment and the consequent increase in future prices feeds off of the increase of investor confidence, who in turn invest more, which in turn does drive future prices, which in turn further increases investor confidence.

A bull run is the period during which a bull market trend takes place, and can vary from a few weeks to even several years in length.

The precise origin of the phrases "bull market" and "bear market" are obscure. The Oxford English Dictionary cites an 1891 use of the term "bull market". In French "bulle spéculative" refers to a speculative market bubble. The Online Etymology Dictionary relates the word "bull" to "inflate, swell", and dates its stock market connotation to 1714.

One hypothetical etymology points to London bearskin "jobbers" (market makers), who would sell bearskins before the bears had actually been caught in contradiction of the proverb ne vendez pas la peau de l'ours avant de l’avoir tué ("don't sell the bearskin before you've killed the bear") — an admonition against over-optimism.

By the time of the South Sea Bubble of 1721, the bear was also associated with short selling; jobbers would sell bearskins they did not own in anticipation of falling prices, which would enable them to buy them later for an additional profit.

Another plausible origin is from the word "bulla" which means bill, or contract. When a market is rising, holders of contracts for future delivery of a commodity see the value of their contract increase. However in a falling market, the counterparties—the "bearers" of the commodity to be delivered, win because they have locked in a future delivery price that is higher than the current price.

Source: Wikipedia

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Securities and Derivatives markets may be subject to rapid and unexpected price movements and past performance is not necessarily a guide to future performance. Trading in these markets is generally considered to be suitable only for the more experienced investor as it carries a high degree of risk. An investor may not receive back the amount of their original investment and in certain circumstances may be liable for a sum that is greater than their original investment. If in any doubt, please seek independent financial advice.