Jan

30

In case you did not hear about this already, in his research, Phil Maymin concludes the following:

"There appears to be a negative relation between music and market volatility. In tumultuous financial times, people prefer steadier music, and in stable financial times, people prefer tumultuous music. Furthermore, it appears as if musical tastes has some ability to predict future market volatility.

The link between music and trading has not been studied in much depth, partially due to a difficulty in obtaining quantitative data. This paper shows not only that there is a link between song and stock volatility, but that the causality appears to go in the least expected direction; namely, this year's popular music seems to predict next year's market volatility."

The full article can be found here.

Perhaps I should consider switching from my plain piano preference to Lady GaGa and Beyonce.

via legacy daily

Kevin Depew comments:

This is less "scientific," but it is an interesting visual of what you are talking about nonetheless.

Marion Dreyfus adds:

From observation over decades, films too are predictive–chaotic times are concomitant with pacific and edenic films, whereas periods of economic calm are positively correlated with martial arts and violence-prone lensers, in much the way the heavily researched topic of skirt-lengths are a secure indicator of economic roller coastering. Long and modest just anterior to boomtimes, short and shocking, with downturns in fiscal friskiness.


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2 Comments so far

  1. Chris Monoki on January 30, 2009 5:43 pm

    Now I know why Metallica tickets were still available on the 15h of January, the day of the concert in DC. But don’t get caught doing the samething with a Jack Johnson concert.

    Keep pressing,
    Chris Monoki

  2. Steve Leslie on January 31, 2009 10:56 am

    I can think of a host alleged of "predictors" for the market. Hemline for women's skirts. When the hemline for a woman's dress and skirts are going up so is the market. Superbowl predictor. If a team from the old NFC wins the superbowl the bulls will be released. If a team from the old AFC wins the superbowl then the market goes down. This used to have startling accuracy. http://www.snopes.com/business/bank/superbowl.asp The January barometer. If January was up then the market was up for the year. From 1950-2000 this barometer was correct 92% of the time. The Presidential predictor. The first two years of a new presidents tenure are dismal but the following two years are bullish. http://www.theglobeandmail.com/partners/free/globeinvestor/international/nov08/tricky.html The GM predictor. I believe Joe Granville popularized this one.

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