Seven year cycle – Shemitah study

Courtesy of Read the Ticker.

First a heads up, this post is allowing the reader to do their own research, make their own mind up. We at readtheticker.com do not hold a biblical view on the markets, but each of your is free to do as they wish.

 NOTE: With this subject it is nearly impossible to get agreement between biblical scholars.

What is the biblical Shemitah Cycle:

1) Biblical reference, Hebrew calendar.
2) 7 year cycle
3) The 7th year is a year of rest (or drop of activity)
4) A more serious 7th year of rest is the 7th year at the end of seven 7 years cycle (ie the 49 year).
5) The year of rest (ie 7th year) maybe a minor, medium or major adjustment. No one knows!
6) 2015 is the 7th year of a Shemitah cycle, and also the end of 7 previous Shemitah cycles (ie the last year of 49 years or 7 Shemitah cycles inclusive). Some call this a Jubilee year.

Below is the most recent 7 year cycle. Not showing the full 7×7. But you get the idea!

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Below we have 200 years of Dow Jones Industrials (monthly line chart). Also below we have from wikipedia a list of economic crisis from 1800s. Match the crisis up with the chart and research 200 years of 7 year cycles. You will see that some dips are minor, some are medium and some a major. What the next dip will be is any one guess??

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List of economic crises (From Wikipedia, the free encyclopedia)

19th century

• Danish state bankruptcy of 1813
• Post-Napoleonic depression (post 1815)

• Panic of 1819, a U.S. recession with bank failures; culmination of U.S.’s first boom-to-bust economic cycle
• Panic of 1825, a pervasive British recession in which many banks failed, nearly including the Bank of England
• Panic of 1837, a U.S. recession with bank failures, followed by a 5-year depression
• Panic of 1847, started as a collapse of British financial markets associated with the end of the 1840s railway industry boom
• Panic of 1857, a U.S. recession with bank failures
• Panic of 1866, was an international financial downturn that accompanied the failure of Overend, Gurney and Company in London

• Long Depression (1873–1896)
  • Panic of 1873, a US recession with bank failures, followed by a four-year depression
  • Panic of 1884
  • Panic of 1890
  • Panic of 1893, a US recession with bank failures
  • Australian banking crisis of 1893
  • Panic of 1896

20th century

• Panic of 1901, a U.S. economic recession that started a fight for financial control of the Northern Pacific Railway
• Panic of 1907, a U.S. economic recession with bank failures

• Wall Street Crash of 1929 and Great Depression (1929–1939) the worst depression of modern history

• OPEC oil price shock (1973)
• Secondary banking crisis of 1973–1975 in the UK

• Japanese asset price bubble (1986–2003)

• Bank stock crisis (Israel 1983)
• Black Monday (1987)

• Savings and loan crisis of the 1980s and 1990s in the U.S.
• 1991 India economic crisis
• Finnish banking crisis (1990s)
• Swedish banking crisis (1990s)
• 1994 economic crisis in Mexico

• 1997 Asian financial crisis
• 1998 Russian financial crisis
• Argentine economic crisis (1999–2002)

21st century

• Early 2000s recession
  • Dot-com bubble
• Late-2000s Financial Crisis or the Late-2000s recession, including:
  • 2000s energy crisis
  • Subprime mortgage crisis
  • United States housing bubble and United States housing market correction
  • 2008–2012 Icelandic financial crisis
  • 2008–2010 Irish banking crisis
  • Russian financial crisis of 2008–2009
  • Automotive industry crisis of 2008–2010
  • European sovereign debt crisis
• 2014 Russian financial crisis

Plenty to review. Spooky yes, will 2015 to 2016 be a crisis of Central Banker QE does not work any more!

Roll up, place your bets!

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Investing Quote…

Kenneth Chang