In which market condition would you expect to see high investor confidence?

High investor confidence is typically observed in a bull market. In this market condition, prices of securities are rising or are expected to rise, which motivates investors to buy more stocks, anticipating that they will continue to increase in value. This enthusiasm is often driven by strong economic indicators, positive corporate earnings, and a general sense of optimism about the economy's future. Investors feel secure in their investments, leading to increased buying activity and further driving prices up.

In contrast, a bear market is characterized by falling prices and generally results in lower investor confidence as individuals often fear further losses. A stagnant market indicates that stock prices are not moving significantly in either direction, which can lead to uncertainty among investors. Lastly, a volatile market, where prices fluctuate widely over short periods, may induce anxiety in investors, causing them to act more cautiously rather than confidently. In summary, the bull market is the environment where heightened confidence and expectations of growth are most pronounced.