Sunny Upside? The Relationship Between Sunshine and Stock Market Returns

Gary Smith and Michael Zurhellen
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Michael Zurhellen: Pomona College

Review of Economic Analysis, 2015, vol. 7, issue 2, 173-183

Abstract: "Weather can have profound effects on economic activity, most obviously agriculture, construction, and transportation. It has also been reported that the daily weather in New York City affects U. S. stock returns, a clear challenge to the efficient market presumption that rational investors will not let their assessment of a stock’s value be swayed by whether the sun happens to be shining. Studies claiming to have found a sunshine effect are clouded by differing methodologies which may have been chosen to buttress the results. We examine a fresh set of data and confirm the existence of a New York City sunshine effect which may have weakened over time as trading has become more geographically dispersed."

Keywords: "weather and stock market; market efficiency" (search for similar items in EconPapers)
JEL-codes: G14 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ren:journl:v:7:y:2015:i:2:p:173-183

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