Stock Market Crashes Typically End In The Year 7

03 Sep Stock Market Crashes Typically End In The Year 7

According to past history, some of the biggest US Stock Market drops in history have occurred in the years ending in 7. For example, the most dramatic occurrence was on Oct 19, 1987. This day was known as Black Monday when the Dow Jones Industrial Average lost over 22 percent on that day. Further other examples include:

  • 1907 – NYSE Index fell over 50% in a 3 week time period
  • 1917 – Dow Jones Industrial Average fell over 30% in the later half
  • 1937 – Dow again fell over 22% at the beginning of the year
  •  1957 – S&P 500 Index fell 14%
  • 1977 – S&P 500 Index fell 11%

 

Also, how can we forget 2007 when the US Markets didn’t experience a crash but they subsequently led to the biggest Financial Crisis in history during 2008-2009.

Another scary historical data to be concerned about is every 20 years, the year ending in “7” is the first year of the four-year US Presidential cycle and these years tend to be quite weak for the US Markets. If history is any indication, the year 2017 could end horribly for the US Markets and result in a sell-off for the next few months. This pattern does not work all the time but it’s never wrong to be cautious heading to the end of 2017.

 

 

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