Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die of euphoria. This progression illustrates the emotional and psychological phases that markets go through. Initially, low expectations and fear dominate, but as confidence slowly builds, the market grows. Optimism marks the peak of its maturity, yet unchecked euphoria and overconfidence eventually lead to its decline. Understanding these phases can help investors navigate market cycles more effectively.
The Lifecycle of Bull Markets
