In working on our 2017 annual outlook report, we decided to take a quick look at how the S&P 500 has historically performed in years ending in “7” going back to 1928 when the index was formed. Unfortunately for market bulls, this is an instance where 7 is not a very lucky number. As shown below, the S&P has historically averaged a slight decline of 0.97% in years ending in 7, with gains occurring only half of the time. Years ending in “0” and “1” have also seen the S&P average a decline, and in these years the index has posted gains less than half the time.
So what has been the best year to be invested? Years ending in a “5” have averaged a mammoth gain of 22.42%, and the index has been up 88.9% of the time in these years (8 out of 9). Unfortunately we have to wait until 2025 to get the next one!
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