Bull market

A bull market is a sustained period of rising prices across stocksTermStock×السهمA share of ownership in a company, bought and sold on a stock exchange, that may pay dividends and rise or fall in value.Open the term and assets, accompanied by investor confidence and increased trading volume. It is the opposite of a bear marketTermBear market×السوق الهابطةA prolonged period when stock and asset prices fall 20% or more from their recent peak, driven by investor fear and selling.Open the term, when prices fall consistently over time.

A bull market means the value of your stocks or investment funds climbs. But whether that gain reaches you depends on how prices are moving elsewhere in the economy. If inflationTermInflation×التضخّمA general rise in prices over time, so one riyal today buys less than it did a year ago.Open the term is high, a stock's nominal price can climb while its real purchasing power stays flat or falls. A return of 20% against inflation of 15% leaves very little once that difference is accounted for. The same number can describe opposite outcomes.

• A bull market does not mean every stock rises: some fall even when the overall market is climbing.
• Bull periods do not last forever. Reversals into bear markets are a normal part of market cycles.
• Confidence and momentum drive bull markets, but they can inflate prices beyond what fundamentals support.
• Rising prices in a bull market mean you buy at higher cost, so timing and valuation still matter.