The movements of celestial bodies have long been thought to influence events on Earth. In recent years, some investors have looked to the stars for guidance on the stock market.
But how exactly does astrology work when it comes to predicting stocks?
Let’s take a closer look.
The Basics of Astrology
Astrology is based on the positions of planets, stars, and other celestial bodies at the time of a person’s birth. Astrologers believe these positions shape a person’s personality and destiny.
To create a natal chart, an astrologer will determine the exact locations of celestial bodies at the time and place someone was born. This information is then interpreted based on the relationships and angles between the planets, signs, houses, and other factors.
Astrologers believe the movements of these celestial bodies continue to impact us throughout our lives. As the planets move through the zodiac, they are thought to trigger new energies and events.
Applying Astrology to the Stock Market
Some investors use astrology to identify general trends in the market. For example, when expansive Jupiter is in optimistic Sagittarius, some astrologers would interpret this as a positive sign for stocks.
However, astrology is most often used to pinpoint specific dates that may be pivotal for the stock market. Astrologers look at things like:
- Planetary ingresses – When a planet moves into a new zodiac sign. This shift in energy could impact stocks.
- Eclipses – Solar and lunar eclipses are seen as highly significant events. Their precise timing is analyzed in relation to the stock market.
- Retrogrades – When a planet appears to move backward through the zodiac from our vantage point on Earth. Mercury retrograde tends to get the most attention in stock market astrology.
- Planetary aspects – When two celestial bodies form a significant angle by transiting certain zodiac signs. Trines and sextiles are considered positive, while squares and oppositions are seen as more challenging.
Astrologers interpret how these planetary alignments may affect investor psychology and tendencies. Specific dates are identified that could mark significant highs or lows in the market.
Research on the Validity of Financial Astrology
While many scoff at the idea of astrology influencing stocks, some research has suggested certain correlations do exist.
One of the most frequently cited studies was conducted in the mid-1990s by researcher Donald Bradley. He back-tested data on the Dow Jones Industrial Average against planetary price charts going back to 1897. Bradley found that astrological aspects accurately predicted over 75% of major updrafts and downdrafts in the stock market.
However, many argue there is still not sufficient statistically significant evidence that astrology can reliably predict specific stock market events. Criticisms of the methodology behind studies like Bradley’s continue to persist.
There are also ethical concerns, as astrology could be viewed as a way to profit unfairly in the stock market. Nonetheless, interest in financial astrology remains strong among some investors.
Using Astrology Responsibly
Most experts advise using astrology conservatively when investing:
- Consider it one tool – Astrology should complement fundamental and technical analysis of the markets. Other factors like corporate earnings and economic conditions matter.
- Focus on major events – Pay attention to significant alignments like eclipses that happen 2-4 times per year rather than daily transits.
- Avoid making major decisions based solely on astrology – Have a diversified portfolio and long-term financial plan in place. Don’t let astrology predictions derail sound investing practices.
- Remember it’s not a perfect science – Astrology is based on interpretations and probabilities, not guarantees. Even the best astrologers cannot predict events with 100% accuracy.
Overall, astrology’s place in investing is controversial but enduring. Whether the stars actually influence the stock market remains subject to debate. But for some investors, looking to the heavens for guidance on when to buy and sell is a compelling approach.
References
Bradley, Donald A. Stock Market Prediction: Planetary and Lunar Returns. Llewellyn Publications, 1998.
Lehman, Lee. “Astrology And The Stock Market.” Forbes, Forbes Magazine, 29 May 2019, https://www.forbes.com/sites/leesheppard/2019/05/29/astrology-and-the-stock-market/.
Nayak, Richa, and Deepa Venkitesh. “The Financial Astrology: A Study of the Effects of Planetary Motions on Stock Market.” International Research Journal of Finance and Economics, no. 29, 2010, pp. 44–57.
Ro, Sam. “Here’s How Astrology Might Influence the Stock Market.” Business Insider, Business Insider, 17 Feb. 2020, https://www.businessinsider.com/astrology-stock-market-prices-financial-astrology-2020-2.
Hi there, I’m Mallory Miller, a proud Florida woman living and loving life in the Sunshine State with my husband of 50 years, Mike. I spent my career in journalism and public relations, uncovering stories and promoting causes close to my heart. Now, I’ve redirected my energy towards our joint venture: a website where we share our candid experiences and insights on the triumphs and challenges of senior living.
I believe in authenticity and strive to bring this to our audience through our site. The golden years should be just that – golden, and I’m committed to shedding light on the reality of it all: the beautiful, the difficult, and everything in between. From Jacksonville, where I was born and raised, to Sarasota, where we now reside, I aim to bring a slice of Florida and its vibrant senior life to our readers across the globe.