How Astrologers Beat The Market

The stars align. Sometimes. How one astrology beats the market.

Grace Morris isn’t some hot shot trader on the NYSE, or a money manager at PIMCO. She’s just really good at astrology. Morris’ monthly newsletter, Astro Economics, takes a top down approach to investing; only her top is a few light years away.  Morris is part of the worldwide alternative investment analysis trade known as financial astrology. They let the stars be their guide.

I looked at her October newsletter to see all of her large cap stock buy recommendations. She based her calls on traditional earth-bound analysis from outsiders, like fundamental and technical data. But the real twist comes from the natal star charts of the companies she chose to recommend to her clients. There were only five large cap buys on the list. Most were holds. The rest were mid and small cap names.  Out of the five large cap buy recommendations she made in October, three beat the S&P 500, and all were trading positive from Oct. 3 to market close on Feb. 17.

The Stars Align Top five large cap buy recommendations from the Astro Economics Stock Market Newsletter, Oct. 2011. Performance from Oct. 3 to Feb. 17, 2012.
United Armour (UA): + 27.8%
Cerner Corporation (CERN): + 3.6%
VMWare Inc. (VMW): + 23.3%
Informatica Corporation (INFA): +18.01%
Alexion Pharmaceuticals (ALXN): +26.44%
S&P 500 Index: +20.3%

In her new book, How To Choose Stocks To Outperform The Market 2012, she described the mythological tinged year of 2012 as a “crossroads” year. “The planetary movements in the constellations, when compared to where those planets were during the birth chart of a country, or throughout certain times in history, really does help identify what’s coming at us in 2012,” she told me in October. “Deep astrology isn’t a horoscope. It is much more complicated. It helps us understand the events in their historical context, the economy, and the stock market.”

In her Market 2012 book, she says the planetary alignments in the years 2012-2015 are similar to those in the early 1930s, 1875-1878, 1755-1758 and 1624-1628 periods, all times of upheaval.
“I don’t think we are heading for Armageddon this year,” she said. “There are some defensive and retail sectors of the domestic economy that are going to do well in the first half.”

Retail, Food, Beverage, Household Products, Durables and Apparel as well as Technology, Chemicals, Agriculture are likely to outperform in the first half. That’s basically the entire market minus defense, utilities, pharma and finance.

“We expect those domestically focused sectors to do well in the first half of 2012,” she said. Ah, but when Jupiter passes through Gemini in June 2012, then what. Huh? Anyone?