The Comparative Study Of Stock Market Time Rhythm And Stock Market Cycle Between China And Foreign Countries

In this paper, the Road ? Jones Industrial Average index, London FTSE 100 index and Hong Kong’s Heng Sheng Index as the research object, by the theory of stock market time rhythm and cycle as the main theoretical basis, on the based of “The Research Of China Stock Market Time Rhythm And Cycle Theory”, it compared the Stock Market Time Rhythm And Cycle of China and foreign countries, not only to verify the universal adaptability of the stock market time rhythm and cycle theory, but also provide investors with a simple, practical and effective new tool for investment technical analysis.Firstly, the paper respectively divided the time rhythm and cycles of the average Dow Jones Industrial between May 1988, 19 to March 15, 2016, London FTSE 100 index between September 28, 1990 to March 15, 2016 and Hong Kong’s Heng Sheng Index between August 20, 1991 to March 15, 2016.Then we found that there is an 89-tradingday time circle in daily K-line Time Series of the US stock market, European stock markets and Hong Kong stock market. It means that the theory of stock market time rhythm and cycle can be applied to the three stocks.Secondly, by comparing and analyzing the characteristics of the time rhythms and cycles of Chinese and foreign stock markets, we found that there was a big different between the structures of Chinese and foreign stock markets’ cycles. The former was two seasons structure, however, China’s stock market presented a standard six or eight seasons structure. After the first and second seasons, it went into the consolidation of a long time.Thirdly, by analysising the cycle characteristics of different stock markets, we made anticipations and drew the following conclusions: Chinese stock market is likely to have entered the third season of cycleⅤ; the US stock market is likely to enter the cycle Ⅴ after it finishes one or two descending rhythm; European stock markets are likely to go through a descending rhythm into the cycleⅤ; Hong Kong stock market has a large possibility of going into cycleⅥ.Finally, based on the respective predictions of Chinese and foreign stock market cycles, we proposed the following international portfolio strategy: To avoid the second season of cycleⅤand firmly grasp the third season of cycleⅤ,investors should pay close attention to the recent trend of the Chinese stock market; at the same time, investors also should be concerned about changes in the stock market of Hong Kong, when the Hong Kong stock market go into the cycleⅥ, investors should timely access to the Hong Kong stock market; European stock markets are likely to remain in a downward trend for some time in the future, investors should exercise caution and avoid the third season of cycleⅣ.When it goes into the cycleⅤ, then the funds should be invested into it.