Why or why not?
2006-09-22 23:09:42 · 13 answers · asked by katrina_ponti 6 in Business & Finance ➔ Investing
Assume your next-door neighbor is a business executive who is also an amateur astronomer. . suppose that this neighbor has noticed on several occasions that the spots on the sun's surface are more active during bull markets.
2006-09-22 23:11:56 · update #1
Ralcoder: lol.. you're on!!!
2006-09-22 23:17:31 · update #2
Ichi: go Ichi, go go go.. you're on man
2006-09-22 23:22:35 · update #3
Energy futures will be your best pick, as the sun is moving into a new maximum, and the paleoclimatological records reveal corresponding dips in global temperatures, such as in the Little Ice Age which lasted from the 13thC well into the 19thC.
See also Maunder Minimum, Milankovitch cycle/theory,
and dendrochronology records for #1, the larch.
2006-09-23 12:32:04 · answer #1 · answered by Bender 6 · 4⤊ 0⤋
As I'm sure YOU are aware (but others here might not be) -- this area of academic study refers to relationships between events not thought to be related to the markets, but show up as related.
It might be that sunspots change our moods and affect markets. The same could be said for rainy days. The strange correlation between the conference that wins the Super Bowl and stock market performance the next year fits into that category.
The fact that the market does (on average) 9% better when democrats are in power than when republicans are in power doesn't fit this category.
So -- yeah -- go ahead and investigate "sunspots."
Incidentally -- a friend of mine is publishing a paper in the Journal of Finance that test moods with stock market performance. He shows that when countries are eliminated from the World Cup, their stock market has (on average) an abnormal drop in value the next day that is statistically significant. He didn't include the USA, of course -- because we don't care.
2006-09-23 04:29:44 · answer #2 · answered by Ranto 7 · 2⤊ 0⤋
Lol. I've tried sun spots. I've tried women's hemlines. But the best indicator is willy bear catapillars. If there are a lot of willy bear catapillars in the fall, the stock market is going up, up. If on the other hand willy bear catapillars are scarce, the market is going down, down. So far this year I have not seen one. I did see a tomato worm though, but I have not had any experience corrolating market action to the prevalence of tomato worms. October 1929 and 1987 were the poorest months ever for willy bear catapillers.
2006-09-23 00:56:40 · answer #3 · answered by Anonymous · 2⤊ 0⤋
If he just notices "on several occasions," then it probably is a coincidence, not a valid statistical correlation. Before you start putting down real money, you should test the relationship between sunspots and market performance over a large time period. Even then, it could be a fluke.
2006-09-22 23:56:13 · answer #4 · answered by NotEasilyFooled 5 · 1⤊ 0⤋
Absolutely not.
It is the air pressure, tempurature and precipitation that affects the stock market.
I should know, I am the only psychic who can predict the stock market. I will prove it.
1. Saturday, the stock market will closed.
2. Sunday, the stock market will be closed.
3. Monday, the stock market will go
up and down and up and down and up and down (unless it rains in Seattle).
4. Tuesday, the stock market will go down and up and down and up and down and up (unless it snows in Canada).
5. Wednesday, the stock market will fluctuate.
I have never been wrong yet.
2006-09-23 00:37:07 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Orion's Dog regularly tells me what stocks to take a punt on, and he is rarely wrong.
Sometimes Caseopia chimes in and tries to tell me other tips but usually Pegasus and the Dog Star argue against her.
The sun is quite reliable I find...What happens when I am buying up companies in China? The sun is in the wrong place there are that can really ruin my mojo
2006-09-22 23:20:11 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Only if you are investing in the satelite or communications industries which do have to take sunspots into account when figuring out their projected income. So yes but you have to learn where such information benefits you most.
2006-09-23 03:53:45 · answer #7 · answered by LORD Z 7 · 0⤊ 1⤋
If the moon is in the seventh house, and Jupiter aligns with Mars, then peace will guide the planet, and love will steer the stars. And that is your buy signal.
2006-09-23 00:59:34 · answer #8 · answered by ProfessorOddlot 4 · 1⤊ 0⤋
Until you can prove a statistical correlation, don't bother. You'll probably do as well by using astrology to pick stocks.
2006-09-22 23:15:24 · answer #9 · answered by Ralfcoder 7 · 1⤊ 0⤋
In this market anythings worth a try.
2006-09-23 16:27:27 · answer #10 · answered by Cali Girl 5 · 2⤊ 0⤋