The driving factors constitute the starting factor for a bull run. As noted, in itself, a bull run is time and economy-dependent. However, to consider the possible factors leading to and maintaining a bull market, here are the possible ones:
1. Robust and Stable Economic Growth
A healthy economy typically enables the rise of corporate profits that increase their stock prices. Easy economic indicators leading to growth in GDP, low levels of unemployment, and increasing wages console the investors while investing in the stocks.
2. Low Interest Rate: The Central Banks- The Federal Reserve in the United States-reduce interest rates to stir up the economy when things are moving at a dead pace or in a state of recession. This shall be an inexpensive loan thereby increasing investments and consumption both, that will lead towards profits from companies and hence a good stock market in the given economy.
3. Corporate Earnings Growth. The other big reason for the bull run is corporate earnings growth. When the corporate earnings come more than the expectations then, the investors get confidence in purchasing those shares hoping that later their income will also grow.
