Years ending in 7, such as the current year 2017, have a bad reputation among stock market participants. Large price declines tend to occur quite frequently in these years.
Just think of 1987, the year in which the largest one-day decline in the US stock market in history took place: the Dow Jones Industrial Average plunged by 22.61 percent in a single trading day. Or recall the year 2007, which marked the beginning of the GFC (‘great financial crisis’).
Given that the current year is ending in 7 as well, is there a reason to be concerned, or is the year 7 crash pattern a myth?
The Pattern of the Dow Jones Industrial Average in the Course of a Decade
Below you can see a chart of the typical pattern of the DJIA in the course of a decade. This is not a standard chart. Instead it shows the average price pattern of the DJIA in the course of a decade since 1897.
This post was published at Acting-Man on October 11, 2017.