Biblically the people of Israel were told that every seven years that they should leave the land uncultivated to rest (Leviticus 25:1-4). Much like the observance of rest and reflection every seventh day, every seventh year would be a year to focus on bringing oneself closer to God as well. This Sabbath year was known as the “Shemitah”. What is interesting is that at the end of this Shemitah year all debts were forgiven or released. The parallels between this ancient system of debt forgiveness and our current system of credit being wiped clean after 7 years is astonishing!
What does something from centuries ago have to do with me?
Most people would argue that something this old has no effect or bearing on modern life, perhaps they are right. Maybe you are not religious, maybe you are skeptical- as many are. Interestingly, as we started looking at this seven year cycle, we saw an amazing pattern.
Here is what we found:
~2008- Final meltdown of stock and real estate markets in the US, investors lose an average of 54% of net worth
~2001- 9/11 attacks- Sept. 17 worst day in stock market history
~1994- Bond market crash
~1987- Black Monday stock market crash
~1980- Savings and loan crisis- Interest rate hike by the Fed- Start of US recession
~1973- Gas crisis- Arab oil embargo- Bretton Woods collapse- Start of 1973-1975 recession in US
~1966- Credit crisis in US
~1959- Monetary recession- Fed interest rate hike
~1952- The Fed leaves Government control, becomes independent bank.
~1945- US Dropped atomic bombs on Japan, ending WW2- Recession of 1945
~1938- Unemployment in the US peaked at 19% – Hitler seizes control of Germany and Czechoslovakia, essentially starting WW2
~1931- Worst Year for stocks during Great Depression
~1924- Unemployment in the US peaked 25.4%
~1917- US declares war on Germany and Austria, enters WW1- Recession in US – Bolshevik revolution takes place, introducing communism, and thrusting Lenin into power
~1910- Panic of 1910- recession in the US
That’s just a coincidence!
Perhaps this is just a coincidence, in fact let’s say it is. Let’s say that you noticed every seven minutes an ATM would inexplicably spit out $100, how long would you sit at the ATM? Most people would sit there until it broke or ran out of money. After all you would be essentially making over $850.00 an hour to sit by the ATM, not many people earn that kind of hourly wage. The point is that when you notice a pattern that will affect you financially, regardless of the reason for the pattern, most rational people would look for a way to profit from this pattern. In the financial world we look for patterns for this exact reason and this pattern has held true for over 100 years!
Will this be the year that breaks the cycle?
Time is the only thing that will tell. Naturally, we are a bit sceptical, as we have seen predictions of this sort come and go without coming to fruition. However, that being said, with everything seeming to come to a head, financially and monetarily, it only seems prudent to prepare ourselves. Given the current situation with Greece, what China has been doing over the past several years, and the current state of affairs with Russia it would seem that any wise individual should take certain steps to preserve their financial well-being. Contact us today to speak with one of our wealth consultants to learn more and find out how you can position yourself for prosperity regardless of how events unfold in the coming months.