A market cycle refers to the recurring pattern of expansion and contraction in asset prices — such as equities, real estate, commodities, or credit — driven by the interplay of economic fundamentals, monetary policy, investor sentiment, and capital flows, as markets move through identifiable phases of accumulation, advance, distribution, and decline. Market cycles exist across multiple time horizons — from short-term intraday cycles to multi-year secular bull and bear markets — and are influenced by business cycles, interest rate cycles, credit cycles, and geopolitical events. Understanding market cycles is central to top-down investment strategy: investors who correctly identify the current phase of the cycle can tilt their portfolios toward assets and sectors likely to outperform in that phase — for example, favouring cyclicals and financials in early expansion, and defensives and gold in late-cycle and recessionary phases. For traders and investors on Ventura Securities navigating Indian equity markets, cycle awareness helps prevent the common error of buying near cycle peaks and selling near cycle troughs.
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