Past Market Movements: Big Booms Are Irregular

Examination of Past Market Movements of Malaysia KLSE
What can we learn from the history of overall market movements in the Malaysia KLSE?

1. Generally Upward Trend
2. Trends Not Consistent
3. Irregular Price Patterns
4. Prices Can Be Very Volatile
5. Prices Move Volatile Upward
6. Big Booms Are Irregular

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6. Big Booms Are Irregular

It appears that the big booms take place somewhat irregularly.

There have been three in the last 18 years from 1970 to 1988; 1972/1973, 1980/1981 and 1986/1987.

Not only are they irregular but they are of short duration, one to two years appears to be the usual length.

This means that it is difficult to catch a big boom at its beginning.

If one goes in after the market has already moved up a great deal, there is a big risk that the market will crash shortly after.