1. Wall Street Weather and Stock Prices The study of Saunders (1993):Saunders (1993): The study examined how the weather at Wall Street influenced stock prices. Note that New York weather is not relevant to variables connected to stock prices. In addition, an earlier study showed that Florida weather, which has an obvious influence on orange crop, had only a minor influence on futures prices of orange juice in New York City. Contributor© POSbase 2008

2. Wall Street Weather and Stock Prices Saunders examined stock prices at the New York stock exchange (Dow Jones Industrial Average) and New York City weather from 1927 to 1989. Moreover, he examined the NYSE / AMEX index from 1962 to 1989 and related to New York City weather. He found a reliable correlation between New York City weather and stock prices: Stock sales increased when it was sunny, but decreased when it was cloudy. © POSbase 2008

3. Wall Street Weather and Stock Prices Saunders concluded that weather influenced mood of those involved in stock trade, which in turn influenced which price traders were ready to pay.mood It is therefore important to include psychological variables into models of asset pricing which are not themselves relevant economically. Examples include mood or processing fluency (see Alter & Oppenheimer, 2006)processing fluency Alter & Oppenheimer, 2006 © POSbase 2008