The solar eclipse and the financial markets

This will be a short read, just wanted to share my opinion on the coming solar eclipse and the financial markets as a whole. We never really want to admit it to ourselves but we are creatures of habit and habit can be influenced by external factors.

A study performed by Professor Mark Kanstra of Canadian Securities Institute Research Foundation, a term professor of finance at the Schulich School of Business at York University, Toronto found that we as investors are influenced by the length of the day to some degree. As the length of the day increases so does our risk appetite and the converse happens the shorter the day. The term is referred to as synchronisation- large scale events that affect many people at the same time like daylight savings.

I do expect to see a difference in the trading pattern of most traders. Considering that the eclipse will travel across the country, I definitely expect to see reduced volatility and activity in the markets.

I hope if you are in the US you have your eclipse glasses on!... or else...

Have a Good one.

David.