Invest on the day of a blue moon but not a total solar eclipse

Friday, 24 July, 2009

Apparently many share investors are very superstitious, and tend to refrain from buying shares, and making other investment decisions, on days when there is an eclipse.

Using four broad indices of the U.S. stock market, we uncover strong evidence in support of our superstition hypothesis in four distinct ways. First, the occurrence of negative superstitious events (i.e. eclipses) is associated with below-average stock returns, which is consistent with a diminished buying pressure coming from the superstitious.

So… as I see it, buying shares or stocks on the day of an eclipse might be a good idea as you could be buying at a lower price, which you can later sell at profit once the superstitious investors have returned to the market and buoyed it back up again.

Via Marginal Revolution.

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