Newspaper article St Louis Post-Dispatch (MO)

Will Unlucky Sevens Jinx the Stock Market?

Newspaper article St Louis Post-Dispatch (MO)

Will Unlucky Sevens Jinx the Stock Market?

Article excerpt

After confounding bearish predictions for two years, the bull market must now contend with Wall Street's version of numerology and astrology: historical patterns that suggest - what else? - difficult times for 1997.

For starters, the market has a notably poor track record during years ending in a seven (the crash of 1987 was only the most recent example).

The first year of most presidential terms, meanwhile, has typically been the worst of the four for stocks, and most second-term administrations have ushered in a bear market. If any of this sounds silly, consider that the stars were aligned much more favorably at the start of 1996, which has shaped up as a highly lucrative year for investors. According to the "Stock Trader's Almanac" by Yale Hirsch, only two years ending in a six this century have produced a down market. Likewise, the four election years ending with a six (1916, 1936, 1956 and 1976) were accompanied by a stock market advance. Unfortunately, the continuation of that trend in 1996 bodes ominously for next year. …

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