What is a bull market?

An index falls to 4,000 points at its low, then climbs over the next 18 months to 5,200. That is a 30% rise from the low, so by the common definition it entered a bull market when it passed 4,800, which is 20% above 4,000.

A $10,000 portfolio that tracked the index from the low would be worth about $13,000 at 5,200. Prices do not rise in a straight line: a bull market usually holds several falls along the way.

JagSim uses real-time prices, so you practice in whatever market is happening now, rising or falling. The chart's ranges reach back a year on any stock or fund, and Portfolio compares your return with the S&P 500 on every plan, which shows whether you kept up with a rising market.

Treating a rising market as skill. When most stocks rise, most portfolios rise. Comparing your return with the S&P 500 shows how much came from your choices.

Adding risk because prices keep rising. Larger positions late in a rise mean larger losses when it turns. A bull market ends only in hindsight.

Why is it called a bull market?

The usual explanation is that a bull thrusts its horns upward, while a bear swipes downward with its paws.

How long do bull markets last?

There is no set length. Some last months and others many years, and the end is usually clear only looking back.

What is the difference between a bull market and a rally?

A rally is a shorter rise, which can happen inside a falling market. A bull market is a long rise, usually 20% or more from the low.

Can a single stock be in a bull market?

People say a stock is in an uptrend when it keeps making higher highs and higher lows. The 20% rule is most often used for indexes.