Influence of weather and moon phase on investors' mood

Abstract

According to the efficient market paradigm, investment decisions are preceded by an analysis of real and estimated prices. In recent decades, the study of investors' mood has shown that factors such as weather, moon phase, seasonal patterns, or sports scores affect investors' risk aversion and therefore their investment decisions. The aim of the present study is to analyze the influence of weather and moon phase on risk tolerance. Based on the client questionnaire developed by JP Morgan, we distributed an electronic survey that allowed the researchers to record the moment in which the survey was completed and therefore the corresponding lunar phase and weather for that day. The main conclusion is that investors are more risk tolerant when there is a full moon and when the sun shines.