Fly Me to the Moon, and Let Me Profit on My Stocks

SOURCE: The New York Times – November 19, 2006

Fly Me to the Moon, and Let Me Profit on My Stocks


THE next time you’re about to buy or sell a stock, you may first want to look up at the moon.

You read that correctly. Believe it or not, the stock market tends to do better or worse depending on where we are in the lunar cycle.

That’s the conclusion of two studies that have circulated for a couple of years in academic circles but that, until an article in the November issue of the Harvard Business Review, received relatively little attention outside academia. The first study, “Lunar Cycle Effects in Stock Returns,” was by Ilia D. Dichev, an associate professor of accounting at the University of Michigan, and Troy D. Janes, an assistant accounting professor at the State University of New York at Buffalo. The second study, “Are Investors Moonstruck? Lunar Phases and Stock Returns”, was by Lu Zheng, an assistant finance professor at the University of California, Irvine; Kathy Yuan, an assistant finance professor at Michigan, and Qiaoqiao Zhu, a graduate student there.
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