What Wall Street and Astrology Have in Common

Both Wall Street and astrology seek to gain insight into current and future behavior by observing what occurred in the past. Wall Street looks at technical charts, astrologers look at horoscopes. Analysts examine past patterns such as the presidential cycle, while astrologers examine how the cycles of the planets influence life on Earth.

Today’s Wall Street Journal Ahead of the Tape column (“Midcycle Slowdown, Best Scenario” by Mark Gongloff) is a good example, as it shows the divergence of conventional market wisdom and astrology. Gongloff asks: “What if the gloom about the economy turns out to be a head-fake?” He gives 1995 as an example where the economy exhibited the symptoms of being under the weather, but didn’t catch the cold.

In 1995 and 2007, Jupiter was in Sagittarius. Pluto spent part of 1995 in that sign as well, fully transitioning into it in 1996. Because Jupiter and its ruler Sagittarius relate to the principle of expansion, the economy continued to do just that. Saturn was in Pisces which traditionally relates to Jupiter. Another long term cycle factor is the Saturn/Pluto cycle. The period when Saturn and Pluto are aligned (1982) to when they are opposing each other (2001), represents a cycle of economic expansion and lower government deficits. From 2001 to Saturn and Pluto’s next alignment in 2020, growth deteriorates and deficits rise.

The bullish case that “a weak dollar will support exports, offsetting trouble from the housing sector” is ludicrous. Planetary cycles affect the entire world since the Earth’s magnetic field responds to the gravitational pull of the Sun, Moon, and planets. When the U.S. and other western economies slow down, “rest of world” is impacted. China and other emerging markets are experiencing high inflation which dampens growth. Looking at each country’s horoscope can ascertain which country will fare the downturn a bit better, but don’t look to China later this year!

The article quotes Lehman Brothers (LEH) economist Drew Matus: “You can’t get a recession when the Fed is in the middle of an easing cycle.” No, Drew. The Fed’s easing will just prolong the pain as the resulting higher inflation will put consumers deeper in debt. Then it becomes not a question of recession, but depression.

Wall Street Journal Ahead of the Tape "Midcycle Slowdown, Best Scenario” (available to online subscribers)

Related Posts: Check out the Cycles section under DIRECTORY for information on current planetary influences.

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