Does the weather in NYC affect the stock market?

Question

It's been mostly gray skies and cold for the last two weeks.
Would a spell of good weather help the market?

Answer 1

Intersting that you ask that. The thinking behind academics is that the markets are efficent and data will affect the stock market. But there is something called the cloudy day effect, which says that on cloudy day, markets dont perform well. There is also a hem line effect. When the fashion designers decrease the hem line of a skirt, markets typically perform well. There is also a january effect, which says that small cap stocks out perform in month of january.

In short, it very well could be that the cloudy day does have an affect.

Answer 2

A hurricane that knocks out the power might have an effect.

There have actually been academic studies about this. A study by David Hirshleifer shows that markets actually do a little better when it is sunny.

There have been other studies on correlations between the markets and various events that may affect the psyche. A friend of mine (Diego Gaicia of UNC) recently published a paper that shows that the stock markets in countries usually drop the day after their country's soccer team gets knocked out of the World Cup. Interestingly, there was no reaction when they win.

Answer 3

not nearly so much as a government with half a brain. Unfortunately, our government seems to have come up rather short in that department.

Answer 4

Nope.

Answer 5

Yeah, right.