We have all heard it before, luck and good things seem to be associated with the number 7.

There are 7: 

Colors in a rainbow

Continents

Notes on a musical scale

Days in a week

Wonders of the world

Etc etc...

Heck, 7 is even referred to as God's number in several religions.

However, when it comes to the stock market, the number 7 may not be so lucky after all.

Looking at the past performance of the U.S. Stock Market we can clearly see that there seems to be something to this 7 number, but not in a good way.

The second half (last 6 months) of all the years ending in 7 has the worst performance of any other number, and it's by a wide margin. 

Take a look at this:

Those are some pretty shoddy returns!

This data covers roughly 110 years of market activity and just about all but one data point, point to a bumpy ride to say the least for the latter part of years ending in the number 7.

To further quantify things a bit, the second half of years ending in 7 also have the worst median return of any other number:

The median return is a negative 9.29%. 

That is pretty significant considering only 3 of the 20 numbers are negative, and the stock market as a whole averages roughly an 8% gain each year...

All that sounds pretty scary, but guess what, there's more...

The largest drawdowns also seem to happen in the second half of the years ending in 7 as well. 

The average drawdown for the second half of years ending in 7 is almost 21%.

Which as you can see, is the largest average drawdown of any other number. 

If you are not familiar with the term "drawdown", it refers to how much the price of something corrects from it's highest point to it's lowest point.

Now that we know that years ending in 7 are rough for the U.S. Stock Market, lets take a breath and reflect on where we are currently. 

Guess what year and time of year we are in right now?

2017 (number ending in 7)

August (the second half of said year)

That's right, we are currently entering the second half of a year ending in 7...

Dun... Dun... Dun...

What does this all mean?

It means you should go out and sell every equity you own and put that money into Steem!

Just kidding, well sort of. 

I do think that steem is a good investment at $1.50 per steem with upside potential of many mulitiples from here, however, I would caution that past performance doesn't necessarily predict future results. 

With that in mind, though, it might be a good idea to trim some stock holdings and pick up some different cryptos just to diversify your portfolio a bit.

Even some of the largest fund managers out there are now talking about adding 1-2% crypto to their investment portfolios.

Stay informed my friends.

Sources:

http://www.marketwatch.com/story/beware-of-the-curse-of-the-number-7-in-the-stock-market-2017-07-21

Image Sources:

http://www.micheleknight.com/articles/numerology/numerology-secrets-of-your-birthday-7th-16th-25th-number-7-life-path/

http://www.marketwatch.com/story/beware-of-the-curse-of-the-number-7-in-the-stock-market-2017-07-21

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