Bull Run

About Bull Run coverage

A 'Bull Run' signifies a sustained period of rising asset prices, typically in a market, sector, or specific commodity. It's newsworthy because it represents periods of investor optimism, economic growth, and wealth creation, but also carries the inherent risk of eventual correction. Based on recent reports from late 2025 and early 2026, several distinct bull runs are currently in various stages. Precious metals, particularly gold and copper, have seen significant upward momentum, with copper hitting record highs due to supply deficits and short squeezes, and gold extending its purchasing streak by the People's Bank of China (PBOC). However, there are signals that the gold bull run might be nearing its end, according to some strategists. In equities, Wall Street is exhibiting 'early-cycle fever' despite being three years into a broader bull market, suggesting continued investor enthusiasm and growth expectations for US stocks. Conversely, the bull run in China's stock market appears to be faltering, facing potential headwinds from underwhelming earnings. The longevity of mutual fund bull runs is also a point of discussion, with questions arising about their ability to extend into a fourth year. Political factors are also being cited, with predictions surfacing about a potential end to the stock market's bull run under a specific presidential administration in 2026. This dynamic landscape indicates a nuanced market environment where some assets continue their ascent while others show signs of exhaustion or impending reversal.

Why it matters: Understanding bull runs is critical for investors as they represent periods of significant capital appreciation, but also signal the potential for increased volatility and eventual corrections. For equities, the 'early-cycle fever' on Wall Street, three years into a bull market, indicates continued growth expectations which could drive further gains, particularly in growth-oriented sectors. However, the prediction of a stock market bull run ending under a specific presidential administration introduces a political risk factor that investors must monitor for potential market shifts. The divergence in global equity markets, with China's stock bull run faltering due to expected weak earnings, highlights the importance of geographical diversification and understanding regional economic health. In commodities, the sustained bull run in precious metals like gold, despite slowing PBOC purchases, and the record-breaking surge in copper, driven by structural deficits, point to strong demand-side fundamentals and inflationary pressures. Investors should consider exposure to these commodities as hedges or growth opportunities, but also heed warnings like UBS's about gold's potential peak. The question of mutual funds extending their bull run into a fourth year underscores the need for investors to evaluate fund performance, underlying asset strength, and broader market conditions to make informed decisions about portfolio allocations and risk management. Monitoring these various bull runs, their drivers, and potential turning points, is essential for strategic asset allocation and protecting gains.