Tag Archives: Sunspots

Sunspot Activity & The Economy

Link Between Economic Activity and Sunspots Confirmed

sunspot activity
A gigantic sunspot – almost 80,000 miles across –can be seen on the lower center of the sun in this image from NASA’s Solar Dynamic Observatory captured on Oct. 23, 2014. This article by Bill Meridian reviews the connections between sunspot activity and the economy.
Image Credit: NASA/SDO

 

“Solar activity as measured by the number of sunspots also adds to the explanation of the probability of a recession.”

A Guest Post by Bill Meridian

Cycles Research

Once again, scholastic research has confirmed the link between planetary activity and the economy here on earth.

In the Global Conference on Business and Finance Proceedings, Volume 7, Number 2, from 2012, there is an article linking changes in the economy to sunspots. Cees J. Prins wrote ‘Solar Activity and Economic Recessions: The Case Of The US.’

Direct and Indirect Influences on the Economy

The author concluded, “The probability of a recession taking place depends on many variables. When the interest rate spread between 10 years government bonds and 3 months Treasury Bills is negative a recession is imminent. Also stock prices can give valuable information with predicting power. Solar activity as measured by the number of sunspots also adds to the explanation of the probability of a recession. In the 3 models that are estimated for 6 time periods the number of sunspots is always very significant. The sun has direct and indirect influences on the economy. To the first category belong damages to electronic networks. The indirect effects are the influences on human emotions and in the end also to the economy.”

One of the most dramatic events associated with sunspot activity is a solar flare, which can create electromagnetic phenomena that disrupt communications on Earth.
One of the most dramatic events associated with sunspot activity is a solar flare, which can create electromagnetic phenomena that disrupt communications on Earth.

Forecasting Recessions with Sunspot Activity

In his work, Prins took several variables and determined their value in forecasting recessions. He began with the inverted yield curve (short-term rates higher than long-term rates) because it is well known that this situation has led to a recession each time it has occurred.

He added variables such as stock prices, the leading indicators of the OECD and The Conference Board, the gold price, the oil price, new building permits, new job creation, corporate rate spreads, long-term rate spreads, and sunspots.

The inverted yield curve, stock market returns, and sunspots were the consistent variables in economic forecasting.

In his words, “It is clear that the model has one interesting and significant long term variable: the number of sunspots.” And, “The number of sunspots, as an indication of the activity of the sun, appeared to be a highly significant variable in explanation of a recession during all the periods investigated.”

Sunspot Activity Leads The Pack

It is noteworthy that only one traditional variable, inverted rates, consistently exceeded sunspots as a forecasting tool. Sunspots led all of the other traditional tools.

 

About The Author

Our guest post is by Bill MeBill_Meridianridian, a leading financial astrologer who is the editor of Cycles Research newsletter and the author of Planetary Stock Trading (4th edition) and The Predictive Power of Eclipse Paths.

You can learn more about Bill Meridian and his services and publications at http://billmeridian.com/

Perspectives from Top Financial Astrologers

When I was in Philadelphia last weekend to speak at the NCGR conference, I had a great time sharing some of the results we’ve been getting here at FinancialCyclesWeekly.com with astrologers and traders who wanted to know more about how planetary cycles really work in their impact on the markets.

It was also an excellent opportunity for connecting with some of my colleagues and good friends who are part of the financial astrology community, including Grace Morris, Arch Crawford, Georgia Stathis and Christeen Skinner.

As always, they had much to share about events in their lives and businesses, and it was fun sharing perspectives on the markets.

Georgia Stathis, for example, said she was expecting a big impact on the equities markets when lunar eclipses hit the natal horoscope for the New York Stock Exchange in October of this year and April in 2014. I’ll be keeping them in mind as  I prepare the next couple of monographs in our ongoing series on Solar Eclipse and their Impact on the Markets.

Arch Crawford said he’s watching the remaining iterations of the Uranus/Pluto waxing square as possible turning points in the markets. He’s also keeping an eye on sunspot activity.

“Based on my analysis of electron flux numbers,” he said,  “it looks like natural forces are trying to take the market down, but the governments of the world are doing everything in their power to keep the markets up.”

Always inclined to take a bearish stance, he added that “I don’t know how much longer they can keep on doing that.”