How Could Financial Astrology Work?
You might be wondering why the movement of the planets in our solar system would have any impact on the stock market. After all, aren’t the planets far away from us and generally not visible without an experienced eye and/or a telescope?
Several possible explanations have been postulated to explain the cause and effect relationship between planetary interactions and life here on Earth (i.e., “as above, so below”), but ultimately additional research is needed to scientifically prove how these interactions work. See below for some possible explanations.
Impact of Planetary Movement on the Level of Solar Output
One explanation is that the movement of the planets can cause changes in the level of solar output. The resulting fluctuations in electromagnetic waves being sent to the Earth from the Sun can affect human psychology and therefore investors’ actions in the financial markets. For example, the Federal Reserve bank of Atlanta released a white paper called “Playing the Field: Geomagnetic Storms and International Stock Markets,” which “documents the impact of geomagnetic storms (GMS) on world and country-specific stock market returns.” In this paper the Fed concluded, “The world and country-speciﬁc stock returns appear to be negatively affected by geomagnetic storms during their recovery phase. This effect is statistically and economically signiﬁcant, and seems to generate some trading gains.“
Endocrine System and Acid-Alkaline Balance
In Stock Market Prediction, Donald Bradley stated, “It is believed by some that astrological influences play directly on the endocrine system of the body…This is a rational theory, for science is certain that human behavior is closely allied to the endocrine glands.” Bradley also mentioned that “others advance the proposition that the acid-alkaline balance in the blood varies, so that the temperament is correlated with this continuous variation. Known medically as the “pH curve,” a graph of the relative degrees of acidity and alkalinity in the bloodstream of a patient appears to show also the patient’s changing moods.”
Prominent Proponents of Financial Astrology
Many people know about Nancy Reagan consulting an astrologer before allowing her husband (Ronald Reagan) to schedule important presidential meetings, but there are other prominent individuals who have come out in support of astrology and financial astrology. For example, in the forward to Kathleen Johnson’s latest book, former U.S. Treasury Secretary William Simon wrote, “The use of astrology as an investment aid might seem to the cynical contemporary Westerner a mild form of lunacy and I must admit that this was my reaction…but, as I have come to know Kathleen Johnson better and to understand a bit more about the broader applications of astrological influences, I have come to view this as a fascinating perspective from which to survey one’s personal strengths and weaknesses in the area of finance and to anticipate trends in the world marketplace.” J.P. Morgan himself is widely quoted as having said “Millionaires don’t use Astrology, billionaires do.”
Knowledge of the Underlying Cause
In the introduction to his book “Astrological Warnings & the Stock Market,” Thomas Reider made an analogy to a 14th century fisherman. This fisherman could only navigate a narrow in the open water at high tide, which occurs when the moon is at its highest elevation in the sky. The sailor’s lack of knowledge that high tide took place because of gravitational attraction did not prevent him from taking advantage of this knowledge of planetary interaction as he navigated the waters.
In his book “Solar and Lunar Returns,” Donald Bradley wrote, “We have to admit…that astrology…is still in its infancy…We do know that planetary influences are a reality. The exact how and wherefore does not greatly bother us at the moment, and rightly so. This old world of ours would have been rather dark for countless eons if the gods had awaited man’s discovery of photons before allowing us sunshine and starlight or even flint…some day we will find out just how planetary…influences are possible, but these are riddles the solutions to which we bequest to future generations of inquirers.”
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