Negative months for shares market

August - October are the negative months for stock market.

In the past three decades of the KLCI memory, the 3Q of the year had typically been the weakest.

Sept and Oct is also known as historical crash-prone period.

That is why some investors shun the market from Aug to Oct.

Month-to-month returns from 1977 to 2009 show that the months with the highest risk are the worst performing. In these 32 years on month-to-month returns, there are a common trend for KLSE, Dow and Hang Seng indices.

All three markets are weak in the Aug to Oct months.

For that reason, investors are recommended to "SELL" over this period and "BUY" in December.

The Oct has been touted as a negative month, more so because many of the global negative events in the past, took place during these months.

Fortunately, Oct'10 has been good to shares market. There are no negative event happen this year, so will the market continue to climb and the bull exist until Chinese New Year?