Bull markets are typically characterized by a few distinctive factors. Market participants can use these factors to determine whether they are in a bull market or not and how likely they are to occur in current market conditions. 

Notable characteristics of bull markets include:

• Rising Stock Prices: Bull markets are defined by a sustained period of increasing stock prices across various market sectors
• Optimism and Confidence: Investors have a positive outlook on the economy and financial markets, leading to increased confidence
• Strong Economic Fundamentals: Generally, economic indicators, like GDP growth and employment, are favorable
• IPO Activity: Initial Public Offerings (IPOs) and new companies entering the market increase during bull markets
• Increasing Trading Volume: As prices rise, trading volume tends to increase, indicating higher market participation
• Short Corrections: Minor declines may occur, but they are typically short-lived and followed by continued upward momentum
• New Highs: Certain stocks may even reach all-time highs during a major bull run

Bull markets can vary in duration and intensity, but they generally represent a period of optimism and rising asset values.

However, it's important to note that bull markets are cyclical, and they are followed by bear markets, characterized by declining prices and pessimism.

When a bull market extends over a few years, market participants may exhibit an increased risk tolerance, which may result in reckless trading activity and asset bubbles.

Asset bubbles can be particularly dangerous not just to the traders, but to entire market sectors or the entire economy. 

It is always crucial to conduct thorough due diligence and look forward to market corrections on the horizon, as no bull market can continue indefinitely. 

Remaining vigilant during euphoria can be one of the best decisions any investor or trader can make, allowing them to capitalize on the mistakes and overextensions of other market participants, including large institutional investors. 

A good example of a long-term bull market has been the S&P 500 over the past decade or more. 

Since the 2008 crisis, ultra-low interest rates have boosted economic growth and allowed the S&P 500 to reach all-time highs, as inflation also played into exuberant market valuations. 

Taking a closer look at the S&P 500 shows the continuous growth experienced by the benchmark index since the crisis, which was further fueled by the lockdown measures and heavy government spending during the Covid-19 pandemic of 2019-2021. 

As we can see, the index has shown explosive growth since 2008, only leveling off in 2022, before rebounding again in 2023. Such a period of rapid growth is not common on capital markets and as interest rates rise, replicating such a bullish run is likely to become more difficult in the future. 

• A bull market occurs when the market shows continuous growth over a period of time 
• Bull markets are typically longer than bear markets and can cause asset bubbles if they extend for very long periods of time 
• Bull markets can be caused by a variety of factors, such as low interest rates, strong economic performance, and investor euphoria
• Bull markets are followed by market corrections, or bear markets, which can turn into full financial crises