What is Bull Market ?
The financial markets for stocks, bonds, and commodities are greatly impacted by consumer confidence. And in bull markets, which occur when investment prices are on the rise for sustained periods, confidence is soaring. Propelled by the thriving economies and low unemployment that usually accompany bull markets, investors are eager to buy or hold onto securities, thus creating a buyer’s market.
How long do bull markets last?
Generally speaking, a bull market is considered over when stocks start a period of steady decline, falling at least 20% from their peak. But it’s important to remember no two bull markets are the same. As the old saying goes, bull markets don’t die of old age. They die when the market has changed fundamentally, when prices have risen too high or too fast, or when some other event forces investors to feel pessimistic about the future.
When we are talking about India as a great investment destination the parameter is India needs to grow first. In 2016 March the GDP growth stood to be 7.9%. However one needs to understand that it was a period of policy paralysis that resulted in some amount of stagnancy in gross capital information.
According to the finance ministry the 2014-2015 fiscal deficit narrowed to 4.0% of GDP. In 2015-2016 fiscal deficit narrowed 3.9% ,3.5% and 3.0 2016-2017, 2017-2018.
The financial takeaway
It’s impossible to predict exactly when a bull market will end. But it always does, after an external force affects investors’ feelings about the future and stock prices start to look too pricey. Despite the inevitable dips, over an extended time horizon, the stock market has never failed to rise. So not being invested in the market means missing out over the long haul. Like a savvy matador, individual investors should keep an eye on the bull’s moves, and adjust accordingly — but always stay in control of their overall strategy and goals.
The Longest Bull Run in History: March 2009 to March 2020
This record-breaking bull market lasted 131.4 months making it the longest in history. After taking a beating during the Great Recession (2007-09), the S&P 500 gained over 400% after a low of 666 points on March 6, 2009. On February 12, 2020, the Dow Jones Industrial Average reached a record high of 29,551 points. The gains for the S&P alone amounted to over $18 trillion on paper, and during the period unemployment was at a 40-year low, at under 4%.
The most sensible thing we can say, based on parallels with past bull markets, is that the current bull market might continue for a very long time and go a lot higher. Despite the same the markets have managed to reach a new high every time.