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I've spent over a decade watching markets swing, and the term 'bull market' is probably the most tossed-around word in finance. But here's the thing: most people have no clue where it actually came from. I didn't either when I started trading. The story behind it is way more interesting than just 'upward trend.' Let me break it down the way I wish someone had explained it to me.
The Origin of 'Bull Market'
The phrase dates back to at least the early 18th century. The earliest known use appears in a 1714 book called The Law of the Jungle (yes, really) where a character says 'the bulls are making a push.' But the most widely accepted origin comes from the way bulls and bears attack.
A bull thrusts its horns upward when attacking. So a bull market means prices are thrusting upward. A bear swipes its paws downward, so a bear market means falling prices. Simple, but brilliant.
But there's a deeper layer. In old London, 'bull' and 'bear' were slang for different types of stockjobbers. A bull was someone who sold contracts they didn't own (short), hoping to buy them back cheaper—wait, that sounds like a bear! Actually, the terms were swapped back then. Over time, they flipped to what we use today. Confusing, right? I remember reading old financial papers and getting completely turned around.
How Bulls and Bears Got Their Names
The most popular story involves two actual animals used in bear-baiting and bull-baiting—blood sports in old England. But the real etymology is tied to the early stock market in London's Exchange Alley.
According to financial historian John Carswell (cited in multiple academic papers), the term 'bull' came from the phrase 'to bull the market,' meaning to artificially inflate prices. The first recorded use of 'bull market' in print is in a 1772 issue of The Gentleman's Magazine. They wrote: 'The bulls have had a fine time of it lately.'
Why did 'bull' win over 'ox' or 'ram'? My theory—and a few linguists agree—is that 'bull' has a punchy, aggressive sound that fits market hype. Also, the visual of a charging bull is much more iconic than a grazing cow.
| Animal | Attack Style | Market Association |
|---|---|---|
| Bull | Horns up | Rising prices |
| Bear | Claws down | Falling prices |
| Wolf | Pack hunting | Aggressive traders |
| Hog | Greedy feeding | Futures overbuying |
The table above is my quick reference. I've seen people try to introduce 'wolf market' but it never stuck. 'Bull' and 'bear' are the OGs.
The Psychology Behind the Bull
Why do we call it a bull market and not a 'happy market' or 'green market'? Because the name captures the emotional state of investors. When prices are climbing, people feel invincible. They buy more, chase gains, and ignore risks. That's the bull spirit—charging ahead without looking back.
I've lived through three bull markets (2009-2015, 2016-2018, 2020-2021). In each one, I caught myself thinking 'this time is different.' That's the bull whispering in your ear. The term itself warns us: be strong, but don't be reckless.
The Herd Effect
Bulls are herd animals. In markets, when everyone is bullish, they stampede together. That's why bull markets often feel like a runaway train. The word 'bull' subtly encourages groupthink—a psychological trap we must resist.
Key Characteristics of a Bull Market
Not every uptick is a bull market. Here's what I look for:
- Sustained rise: At least 20% over two months or more.
- Broad participation: Not just tech stocks—most sectors rise.
- High volume: More shares traded daily.
- Strong economy: GDP growth, low unemployment.
- Investor optimism: IPO booms, new fund launches.
Bull Market vs Bear Market: Side-by-Side
| Feature | Bull Market | Bear Market |
|---|---|---|
| Direction | Upward (horns) | Downward (claws) |
| Duration (avg) | ~4 years | ~1 year |
| Investor mood | Confidence, greed | Fear, panic |
| Economic backdrop | Expanding GDP, low unemployment | Recession, job losses |
| Typical cause | Innovation, loose monetary policy | Bubble burst, crisis |
| End trigger | Overvaluation, rate hikes | Overselling, stimulus |
I've memorized these contrasts from years of journaling. The hardest lesson: bull markets don't die of old age—they're murdered by the Fed or a black swan.
Historical Bull Markets: Lessons from the Past
Let me walk you through a few that shaped finance:
The Roaring '20s Bull (1921-1929)
Rise: ~500%. Ended with the 1929 crash. Key driver: new technology (radio, cars) and easy credit. Sound familiar? I see parallels to the 2020-2021 crypto bull.
The 2009-2020 Bull Market
Longest in history (11 years). Fueled by zero interest rates and tech expansion. I got in late 2010 and learned that even a long bull can have scary drops (2011, 2015, 2018). The name 'bull' never felt more apt than when we were charging through the COVID dip.
Common Misconceptions About Bull Markets
Myth 1: Bull markets always follow bear markets. Not necessarily—sometimes a correction (10% drop) is enough to reset.
Myth 2: You can easily spot the start. No way. In early 2009, nobody called it a new bull until months later. I remember being too scared to buy.
Myth 3: All sectors rise equally. Nope. In a bull market, defensives (utilities) lag while cyclicals (tech, consumer discretionary) lead.
Myth 4: The term originated in Wall Street. Actually, it was London's Exchange Alley in the 1700s. Wall Street just popularized it.
