Quick shot: Bull markets can last for a long time (2024)

FAQs

How long can bull markets last? ›

Bull markets can last for a long time.

The median bull market lasts 46 months (about three times longer than the average bear market). The S&P 500's current bull run is only 21 months old.

How long bull and bear markets last. Bull markets tend to last longer than bear markets, in part because stock prices tend to trend upward over time. There have been 26 bear markets and 26 bull markets since 1872.

It is generally better to buy stocks and other investable securities during a bull market since they pose less risk and have a better chance of being profitable. That said, investing in a bear market can still be profitable in the long-run.

Bull Market. A period of increased stock trading and rising stock prices.

Bulls, much like cows, can live ten to twelve years. Most bulls will remain active in the herd for closer to four or five years due to feet and leg, structural, and fertility problems, temperament concerns, or injuries. The decision to cull many bulls happens in the spring after failing a breeding soundness exam.

Historically speaking, the average length of a bull market is 9.6 months. The average gain for a bull market is 112%. Keep in mind these are the average and they have been extending with each bull market.

Investors who want to benefit from a bull market should buy early to take advantage of rising prices and sell them when they've reached their peak. Of course, it is hard to determine when the bottom and peak will take place.

As asset prices go up and deliver gains, more people are encouraged to buy and continue the rally. Since bull markets tend to happen when the economy is strong, investors generally feel good about their financial situation and have more money to put into the market.

Disadvantages of Bull Markets

Loss of Perspective: Bull markets can lead to over-optimism, causing investors to overlook the risks associated with bull investing. This may result in poor decisions, such as purchasing overpriced stocks.

A time when stock prices are rising and market sentiment is optimistic. Generally, a bull market occurs when there is a rise of 20% or more in a broad market index over at least a two-month period.

Why is market called bull? ›

A bull market is when stock prices are on the rise and economically sound, while a bear market is when prices are in decline. The origin of these expressions is unclear, but one reason could be that bulls attack by bringing their horns upward, while bears attack by swiping their paws downward.

In a bull market, there is strong demand and weak supply for securities. In other words, many investors wish to buy securities, but few are willing to sell them. As a result, share prices will rise as investors compete to obtain available equity.

Based on historical patterns and bitcoin's four-year halving cycles, many analysts predict the crypto market is primed for another major bull run in 2024. Quantitative models forecast the bull run could last 12-18 months and bring even greater returns than the epic 2021 rally.

Veteran investor David Roche expects a bear market in 2025, caused by smaller-than-expected rate cuts, a slowing U.S. economy and an AI bubble. Those factors could cause a bear market of minus 20% in 2025, maybe starting at the end of this year, but the Fed will have room to adjust, he added.

As the midpoint of 2024 nears, the stock market forecast for the next six months still looks bullish, building on the same layers of support that have pepped up stocks all year. Though risks remain, the reasons for the hopeful mood stack up like tiers of a layer cake. The resilient economy serves as the base.

The current bull market started around 2012-2013. Over the past 100 years, there have been three significant bull markets and three bear markets. The averages of these cycles suggest this bull could last until 2028 or 2029. However, this does not mean that stocks will be immune to pullbacks.