Good Day Sunshine: Stock Returns and the Weather

  • Hirshleifer D
  • Shumway T
  • 434


    Mendeley users who have this article in their library.
  • 436


    Citations of this article.


morning sunshine in the city of a country's leading stock exchange and daily market index returns across 26 countries from 1982 to 1997. Sunshine is Psychological evidence and casual intuition predict that sunny weather is as- sociated with upbeat mood. This paper examines the relationship between strongly significantly correlated with stock returns. After controlling for sun- shine, rain and snow are unrelated to returns. Substantial use of weather- based strategies was optimal for a trader with very low transactions costs. However, because these strategies involve frequent trades, fairly modest costs eliminate the gains. These findings are difficult to reconcile with fully rational price setting. SUNSHINE AFFECT

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document


Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free