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Predicting anomaly performance with politics, the weather, global warming, sunspots, and the stars

Robert Novy-Marx

Journal of Financial Economics · 2014 · Volume 112 · Issue 2

DOI: 10.1016/j.jfineco.2014.02.002

Abstract

Predictive regressions find that the party of the US president, the weather in Manhattan, global warming, the El Niño phenomenon, sunspots, and the conjunctions of the planets all have significant power predicting the performance of popular anomalies. The interpretation of these results has important implications for the asset pricing literature.

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