When it comes to choosing investments, some investors rely on stock screeners and economic indicators, while others look to the stars. Financial astrology is based on the belief that celestial bodies such as the sun, moon, and planets can influence economic trends and market movements.
Although many people are skeptical of this concept, financial astrology has a dedicated following, with proponents claiming that it provides unique insights into the financial world.
Understanding Financial Astrology
Financial astrology, also known as economic astrology or astro-economics, is a pseudoscientific practice that links the movements of celestial bodies to events in financial markets. It is an extension of traditional astrology, which aims to interpret how planetary positions affect everyday life.
Financial astrologers believe that these celestial patterns can be used to predict market trends, economic cycles, and even individual investment success.
There are numerous books and websites dedicated to financial astrology, such as “The Bull, The Bear and The Planets” and StockAstrologer.com. Additionally, there are courses, podcasts, and newsletters focused on financial astrology, with names like Profit With The Planets and CryptoDamus.
Many astrologers are also utilizing platforms like TikTok to offer financial advice based on birth charts and other astrological indicators.
Key Principles of Financial Astrology
At the core of financial astrology is the belief that the universe operates in cycles, and these cycles are reflected in economic activities. Just as the moon’s phases influence tides, financial astrologers suggest that planetary alignments can impact market behavior.
Financial astrologers often attempt to forecast future price movements in the stock or commodity markets by analyzing planetary influences. They believe that planetary positions can create energetic shifts that influence human psychology, including investor sentiment, which in turn affects market movements.
It’s important to note that there is no scientific evidence supporting these claims.
Beliefs in Financial Astrology
Financial astrologers use various techniques to make predictions, and there are some widely held beliefs in the astrological community regarding how celestial bodies influence markets.
Two core beliefs in financial astrology include:
- Cyclicality of markets: Financial astrologers believe that market trends follow cyclical patterns that correspond to planetary cycles.
- Individual investment success: Some practitioners believe that an individual’s birth chart can provide insights into their investment style and risk tolerance.
Natal Chart and Ephemeris
Financial astrologers often assign natal charts, also known as birth charts, to specific companies or stock indexes. Some astrologers analyze the natal chart based on the incorporation date of a company or its public offering. Others consider the birth chart of the CEO or the largest shareholder.
By examining these charts alongside historical market data, financial astrologers try to identify planetary aspects or positions that coincide with market changes. They also look for indicators of potential corporate events, such as mergers or acquisitions.
Furthermore, financial astrologers use ephemeris, a table or database listing the positions of celestial bodies like the sun, moon, and planets at specific times.
Moon Cycles and Financial Astrology
Moon cycles play a significant role in financial astrology. The theory is that the phases of the moon are correlated with market highs and lows, similar to its influence on tides. The goal is to buy low during waning phases and sell high during waxing phases, while eclipses are considered unpredictable.
Interestingly, there is some academic research on moon cycles affecting the markets. A 2006 study by University of Michigan economists found a correlation between full moons and lower stock returns in a 48-country portfolio.
The study revealed that stock returns are significantly lower in the days surrounding a full moon compared to those around a new moon, resulting in a 3-5 percent annual difference in returns across various global portfolios. The researchers acknowledged the possibility of random correlation in the data but noted that this effect was independent of other factors influencing market performance.
Planetary Influences in Financial Astrology
In astrology, the planets are believed to influence human behavior, personality, and events. Financial astrology incorporates planetary influences into market analysis, attributing specific qualities to each planet based on its interactions with others.
Here’s a breakdown of some planetary influences in financial astrology:
- The sun: Represents a company’s core identity and leadership, associated with luxury, entertainment, and precious metals.
- The moon: Reflects market sentiment, emotional reactions, and public perception, influencing real estate, consumer goods, and silver.
- Mercury: Governs communication, information, and trade, linked to media, technology, and transportation sectors.
- Venus: Symbolizes finance, beauty, and relationships, connected to banking, fashion, and luxury goods industries.
- Mars: Represents energy and competition, associated with industrial sectors, manufacturing, and military-related businesses.
- Jupiter: Signifies expansion, growth, and optimism, influencing finance, law, and international trade.
- Saturn: Embodies structure, discipline, and limitation, linked to real estate, construction, and agriculture.
- Uranus: Represents innovation, disruption, and technology, associated with tech companies, aviation, renewable energy, and cryptocurrencies.
- Neptune: Symbolizes dreams and the collective unconscious, linked to oil, gas, and pharmaceuticals.
- Pluto: Represents transformation and control, associated with large corporations, finance, and energy.
Risks Associated with Financial Astrology
Financial astrology comes with inherent risks. There is no scientific evidence to support its efficacy, and reliance on astrology for investment decisions can lead to significant losses. Additionally, confirmation bias may lead individuals to interpret random events as astrological insights.
Relying solely on financial astrology for investment decisions can result in missed opportunities and financial setbacks. It’s essential to approach investment strategies with a solid foundation in financial planning and risk management rather than relying on astrological beliefs.
Conclusion
While financial astrology may be intriguing, it is essential to prioritize sound financial planning and analysis when making investment decisions. While astrology can add a unique perspective, traditional financial strategies remain the most reliable approach to building long-term wealth.
Editorial Disclaimer: Investors should conduct independent research into investment strategies before making decisions. Past performance does not guarantee future price appreciation.