What is a bull market? A bull market is a term used to define a long period of rising stock prices that usually lasts one to three years or more. In contrast, a bear market is a long-term period of falling prices that typically lasts a year or two. So-called "intermediate-term corrections," or market setbacks, come along unpredictably in every bull market cycle. They often last from three to six months. In addition, the period from May through October tends to have more than an average share of market weakness. During a secular bull market, stock prices still go through bear markets (downturns of 20% or more, say). The difference with a secular bull market is that the rising phases within it generally last longer and go higher than people expect. Also, the falling phases or bear markets take a smaller toll off of stock prices, and/or end sooner than people generally expect. Most important for investors, few stocks move in lockstep with the market indexes. The best stocks in the next bull or rising market will begin rising before the next bull market gets started. Rather than try to cut risk by getting out of the market, you are better off doing so by sticking with our three-part Successful Investor strategy:

1. Invest mainly in well-established companies;
2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
3. Downplay or avoid stocks in the broker/media limelight.

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