Is December good time to invest in stock market?

Is December good time to invest in stock market? That’s the question that I ask myself lately. I did not buy any stock after selling Tanjong plc stock last month. And plan to buy back it again now. But when is the question. Therefore, I did some research on the previous years’ performance on the month of December. Let’s see the history speak for itself. Anyway, past historical record does not mean that it will perform as same as before. Stock market is not predictable. But you can know it better by studying more.

December 2008 KLCI vs Dow

As you can see, KLCI gains around 4% while Dow at 8% on December 2008. Below are the record from 2007 onward…

2007 – KLCI 2% gain while Dow flat
2006 – Both around 2% gain
2005 – KLCI 1.5% gain but Dow 1.5% loss
2004 – KLCI 1% loss but Dow 2% gain
2003 – KLCI flat while Dow 5% gain
2002 – KLCI 4% gain but Dow 6% loss
2001 – KLCI 8% gain and Dow 3% gain
2000 – KLCI 6% loss but Dow 1% gain
1999 – KLCI 9% gain and Dow 1% gain
1998 – KLCI 6% gain and Dow 4% gain
1997 – KLCI 13% gain while Dow flat
1996 – KLCI 1% gain but Dow 1% loss
1995 – KLCI 2% gain and Dow 1% gain

Woo… There are lot of blue colour ~ gain. I have my answer now. The stock market for December 2009 will likely go up. 😉

  • Sure, because the price quite low in December and tend to increase after December (holiday).

  • I think the market will down due to many holidays in December. All fund managers went holiday already…