Moneyspider in the News

Stellar returns with financial astrology

Myfinances.co.uk

Financial astrology is fast becoming the investment fad of the year, with companies picking stocks based on the movements of the stars, but can it work? Currently very popular in the US, Financial astrology firms are now targeting UK investors, predicting the performance of currencies, Stock markets, property prices and Other financial asset classes from Shifts in the heavens.

There are even funds that can be invested in which stocks are picked for you using these principals. However, many successful fund managers see the idea that successful stocks can be picked by using astrology, as pie in the sky.

"This is in our view quite frankly dangerous for investors" said Bill Ross, managing director of Moneyspider.com

"It is one thing to have a bit of fun with the likes of Mystic Meg et al, but would anyone in their right minds seriously want to invest their hard earned cash on the basis of the relative positions of celestial bodies" questioned Mr Ross.

"Who is the sensible investor most likely to believe? A research service... or a man in a pointy hat rambling on about when Mercury is rising in Gemini, or whatever."

Moneyspider pointed to a study by The British Association for the Advancement of Science. This saw a professional investor, a financial astrologer and a five year old child to invest a fictional £5,000 on the FTSE100 the child lost the least amount of money and the financial astrologer made the largest losses