Glossary
Bull Market
A bull market is a sustained period of rising prices in financial markets, typically defined as a 20% or greater increase from a recent low. Bull markets reflect widespread investor optimism and economic growth.
Why it matters
Bull markets create wealth but also breed overconfidence. During prolonged bull runs, investors tend to take on more risk than they realize, overweight trendy sectors, and assume recent returns will continue. Understanding that bull markets are cyclical helps you stay diversified and avoid chasing performance.
Example
The bull market from 2009 to 2020 lasted over 11 years, with the S&P 500 rising roughly 400% — the longest bull run in U.S. history.
How Ray helps
Ray helps you stay grounded during bull markets by showing your portfolio performance alongside your actual financial goals. Try to focus on your plan rather than market euphoria.
$ ray "am I on track for my savings goals?"Related terms
Bear Market
A bear market is a sustained decline of 20% or more in a broad market index from its recent peak.
Capital Gains
A capital gain is the profit you earn when you sell an asset for more than you paid.
Diversification
Diversification means spreading investments across different asset classes, sectors, and geographies to reduce the impact of any single investment's poor performance on your overall portfolio..
Portfolio
A portfolio is the complete collection of your financial investments — stocks, bonds, mutual funds, ETFs, real estate, and other assets.
Index Fund
An index fund is a type of mutual fund or ETF designed to track the performance of a specific market index, like the S&P 500.