In the last webinar, I talked briefly about evaluating the statistical significance of economic cycles and astrology for stock market timing!!
Yes; no kidding. I actually looked at the statistical significance of astrological cycles on stock market timing. Unfortunately while there is a lot of literature out there on this topic, I personally wasn’t able to detect a statistical significance.
One of the blogs that I follow is from this gentleman Peter Temple based in Canada. He has looked at cycles in great level of detail and also analyzed their impact on stock markets.
Here is his recent blog for those interested. You can read it here.
You can agree or disagree with some of his political opinions; but he does make a very logical case for cycles existing in emotions and hence the financial markets.
I personally do believe in cycles in nature…..but whether they have the ability to influence financial markets is another conversation. I am willing to be convinced; but not able to find a way of using that information to make profitable timing decisions yet.
