Stock prices have risen in 10 of the past 13 eclipse years, dating back to 1900.
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Investors and astronomy fans alike are in high spirits to start the week ahead of a total solar eclipse scheduled for this afternoon. How will a solar eclipse affect the stock market?
Well, this once-in-a-lifetime event actually doesn’t have a particularly established history in the stock market. In layman’s terms, if the moon briefly overtakes the sun today, don’t expect it to cause any noticeable stock price movements. But as things stand, stock prices are currently rising across all major indexes. Nasdaq Composite So far, it is expected to rise 0.3%.
That being said, stocks tend to do very well in eclipse years. In fact, in his 10 of the past 13 eclipse years from 1900 to 2017, Dow Jones Industrial Average They ended the year profitably, sometimes by large margins.
Most famously, the Dow Jones Industrial Average skyrocketed 44% in 1954, and the other three eclipse years saw gains of more than 25%. detroit free press.
It is worth noting that of the three eclipse years (1923, 1920, and 1932) in which stock prices did not rise, the market actually slumped quite badly. The Great Depression of 1930 and 1932 caused the Dow to decline approximately 34% and 23%, respectively. However, in 1923 the stock price fell only 3.3%.
How will a solar eclipse affect the stock market?
Now, let me be clear: correlation is not (and never has been) causation. 10 out of 13 is not enough data to draw any firm conclusions, especially considering that stock prices tend to rise frequently over their long history. Therefore, this is not evidence that the eclipse has any impact on public sentiment enough to move stock prices. Rather, it’s just a happy coincidence.
If that’s not reason enough to put down your ticker sheet and get your hands on some international standard ISO 12312-2 solar eclipse eyewear today. I don’t know what is what.
On the date of publication, Shree Dua did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer and are subject to InvestorPlace.com Publishing Guidelines..
