Market cycles: why markets boom and bust

Markets don't rise in a straight line — they move in cycles of optimism (expansion, rising prices) and pessimism (contraction, falling prices), driven by the economy, earnings and sentiment.

• No one reliably times the top or bottom — even pros get it wrong.
• SIPs work with cycles: you buy more units when prices are low.
• Staying invested through a full cycle is what captures equity's long-term return.

The lesson: time in the market beats timing the market.

→ Test this with a SIP backtest in the calculators.