Words ending dating
Remember, seasonality is an observation over a long period and there are years where it might not work.
Years ending in seven have the second worst year record for the DJI. 1857 saw the DJI lose 31%, in 1907 the DJI was down 37.7%, in 1917 the DJI dropped 21.7%, and finally in 1937 the DJI fell 32.8%.
While gold's free trading history commenced only in the 1970s, it is interesting to note that of thirteen times gold saw gains of 20% or more in a year, three of them occurred in years ending in seven—1977, 1987, and 2007. Given the years ending in seven and their propensity for panics and crises, it might not be a surprise that seasonality also plays a role.
And while gold has had only four years where it lost more than 20%, one of them naturally occurred in a year ending in seven—1997. According to research carried out by Don Vialoux and Jon Vialoux of Equity Clock and Timing the Market markets' ten-year cycle seasonality for years ending in seven is quite negative.
The expectation was it was going to result in another Great Depression.
It didn't, and by 1989 the DJI had recovered its 1987 high. The DJI lost upwards of 40% in the crash, but 1987 ended the year with a small gain.