Unlucky Number 7
Serious market corrections have occurred, more often than not, in years ending in 7. Going back to the beginning of the 20th century, an important market decline has occurred during every year ending in 7, some more severe than others.
1907: The Panic of 1907 (also know as the Bankers’ Panic or Knickerbocker Crisis), which started in October of 1907 and resulted a three week decline of 50%.
1917: In 1917, the market declined 50% , including a drop of 7.24% in one day on February 1, 2017.
1927: Even 1927 experienced an 8.5 % decline from September to October.
1937: The Market fell 54% in 1937 including a one day decline of 7.75% on October 18th.
1947: In 1947, the stock market experienced two large declines. One 7% decline from January until June and a 14% decline from August of 1947 until January of 1948.
1957: The market fell 15% from December 1956-December 1957 and was never positive for the year. Between July and October, the market fell 20%.
1967: The market declined 9% from September 1967-January 1968.
1977: The market suffered a 22% decline for the year.
1987: The market declined 32% from August of 1987-November 1987, including a 23% one day decline in October.
1997: The Thai Bhat crisis occurred during 1997 which set off an emerging markets crisis that saw the DJIA suffer a 10% decline from July-November.
2007: September 2007 started a 50% decline that did not end until Feb 2009
2017: ??? Will 2017 follow the curse of 7’s ?
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