A market cycle in which the overriding trend is up. Typically, it has an initial upward phase that lasts four to five years. Then, this phase is followed by a sharp correction spanning one to two years, another rally of four to five years, a mild mid-cycle correction, and finally a major bull market top. In a bull market cycle, the average price-to-earnings ratios begin to expand, interest rates tend to fall, and inflation retreats (though asset prices usually rise). Bull market cycles can be classified as cyclical bull market cycles and secular bull market cycles.
The period 1982-2000 is a prime example of a bull market cycle.
Comments