While many investors rely on stock screeners and economic indicators to pick investments, others turn to the stars. Financial astrology is the belief that celestial bodies — the sun, moon and planets — exert an influence over economic trends and market movements.
While it’s a concept met with skepticism by many, financial astrology has a dedicated following, with proponents claiming it offers unique insights into the financial world.
What is financial astrology?
Financial astrology, also known as economic astrology or astro-economics, is a pseudoscientific practice that correlates celestial bodies’ movements with events in financial markets. It’s an offshoot of traditional astrology, which seeks to interpret the influence of planetary positions over everyday life.
Financial astrologers believe that these cosmic patterns can predict market trends, economic cycles and even individual investment success.
A quick Google search uncovers numerous books and websites on financial astrology, including “The Bull, The Bear and The Planets” and StockAstrologer.com, not to mention dozens of courses, podcasts and newsletters with names like Profit With The Planets and CryptoDamus.
A growing number of astrologers are also leveraging TikTok to offer financial advice. Videos abound on investment strategies, wealth accumulation and money management all centered around birth charts and other astrological indicators.
Basics 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 activity. Just as the moon’s phases influence tides, financial astrologers believe that planetary alignments impact market behavior.
Financial astrologers often try to forecast future price movement in the stock or commodity markets. The idea is that the planets can generate energetic shifts that impact human psychology, including the mindset of investors, which in turn influences market movements.
To be clear, there’s no evidence to support this.
What do financial astrologers believe?
Financial astrologers employ a range of techniques to make their predictions, and there’s a few widely held beliefs in the astrological community about how the stars impact markets.
Two core beliefs of financial astrology include:
- Cyclicality of markets: They believe that market trends follow cyclical patterns that correspond to planetary cycles.
- Individual investment success: Some practitioners believe an individual’s birth chart can offer insights into their investment style and risk tolerance.
Natal chart and ephemeris
Financial astrologers often assign natal charts, also called birth charts, to specific companies or stock indexes. Some astrologers analyze the natal chart based on when a company was incorporated or went public. Others consider the birth of the CEO or the largest shareholder.
By analyzing these charts alongside historical market data, financial astrologers attempt to identify planetary aspects or positions that coincide with real-world market changes.
Astrologers also look to charts to find indicators of potential future corporate shake ups, like mergers or acquisitions. Or they may simply observe how commodity prices, like gold, behave when the sun and other planets enter into new zodiac signs.
An ephemeris is another tool used by financial astrologers. It’s essentially a table or database that lists the positions of celestial bodies — the sun, moon and planets — at specific points in time.
To the moon?
Moon cycles play a big role in financial astrology. The theory is that the moon’s phases correlate with market highs and lows, much like its influence on tides. The goal is to buy low (during waning phases) and sell high (during waxing phases). Eclipses are said to be a time of unpredictability.
Surprisingly, there’s some academic research on moon cycles moving 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 found stock returns are notably lower in the days surrounding a full moon compared to those around a new moon. This difference in returns amounts to 3-5 percent annually across both equal-weighted and value-weighted global portfolios.
Researchers noted that this effect is independent of other factors that typically influence market performance, such as economic indicators and well-known calendar events. However, researchers also acknowledged the possibility of random correlation in the data.
The planet play
In astrology, the planets are believed to influence human behavior, personality and events. Their positions and relationships in a birth chart are mapped out to understand personality traits and potential life experiences.
You’ll hear plenty of planet talk in financial astrology, too. For those who buy in, each planet embodies certain things — riches, financial failure, economic uncertainty — based mostly on the angles at which it interfaces with other planets.
Here’s a rundown.
- The sun represents a company’s core identity and leadership. It’s associated with luxury, entertainment and precious metals.
- The moon reflects market sentiment, emotional reactions and public perception. It influences real estate, consumer goods and silver.
- Mercury governs communication, information and trade. It’s linked to media, technology and transportation sectors.
- Venus symbolizes finance, beauty and relationships. It’s connected to the banking, fashion and luxury goods industries.
- Mars represents energy and competition. It’s associated with industrial sectors, manufacturing and military-related businesses.
- Jupiter signifies expansion, growth and optimism. It influences finance, law and international trade.
- Saturn embodies structure, discipline and limitation. It’s linked to real estate, construction and agriculture.
- Uranus represents innovation, disruption and technology. It’s associated with tech companies, aviation, renewable energy and cryptocurrencies.
- Neptune symbolizes dreams and the collective unconscious. It’s linked to oil, gas and pharmaceuticals.
- Pluto represents transformation and control. It’s associated with large corporations, finance and energy.
Risks of financial astrology
Financial astrology comes with some planetary-sized risks. For starters, there’s absolutely no scientific proof that it works. It’s all based on beliefs, not facts. Plus, every astrologer seems to have their own take on things, so you can get wildly different advice.
Another risk is confirmation bias, the tendency for people to selectively focus on information that supports their existing beliefs. Sheer luck is often mistaken for astrological insight and celestial influence.
If you rely solely on astrology for your investments, you could miss out on some great opportunities or lose all your money. And if things don’t go as planned, it can really shake your confidence. So, while it might be interesting to read about, financial astrology isn’t a reliable way to build your wealth.
Bottom line
While it might be fun to contemplate the stars, keep your feet firmly planted on the ground when it comes to investing. Financial astrology is a quirky concept, but solid financial planning strategies are still your best bet for long-term success. Remember, past performance and patterns — even celestial patterns — aren’t predictions of future results.
Ultimately, investing is a mix of art and science. While astrology adds a touch of cosmic flair, traditional financial analysis and risk management are still the best way to make smart investment decisions.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
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