Does the Weather Affect the Stock Market?

One professor says that there’s definitely a possibility that it may:

Professor Ben Jacobsen’s paper “Is it the Weather?” confirms that there is definitely a strong seasonal effect in stock returns in many countries: stock market returns tend to be significantly lower during summer and autumn months than they are during winter and spring.
However, says Professor Jacobsen, it is premature to conclude that weather affects stock returns by causing mood changes in investors. “While the effect on the markets is there, we still don’t know why.”

Click here for the paper.

Posted by on December 19th, 2005 at 5:58 am


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