The stock market suffers from seasonal affective disorder too

Economist John Maynard Keynes said that “animal spirits” move the markets, but maybe the sun and the clouds have something to do with it, too.

In his “General Theory of Employment, Interest and Money” Keynes wrote, “The markets are moved by animal spirits and, not by reason.” This quote, which is widely printed in economics textbooks, serves to warn students that investors are not always rational went it comes to their investment decisions.

In fact, the markets are often roiled by fear and uncertainty.

A report circulated last month by the National Bureau of Economic Research analyzes how seasonal investor sentiment affects portfolios and offers a unique explanation for a possible driving force behind those market-moving “animal spirits”.

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