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Thank Fathom it’s Friday

A sideways look at economics

It’s a beautiful day — time to buy stocks

30 July 2021|

In my eleven years in the UK, every hot, sunny spell has increased my appreciation of the links between the weather and human behaviour. On these days: supermarkets will sell out of disposable barbecues before I manage to get hold of one; a surprisingly large proportion of men will remove their shirts and turn a painful red as the day progresses; ice cream vans will be nowhere to be found; usually calm drivers will be doing their best to boost government revenues from speeding tickets; the government will use the fine weather as an opportunity to bury bad news, and sneak out unpopular announcements; road rage incidents will proliferate and fights will erupt between neighbours, making work for lawyers. Last week’s heatwave made me appreciate another behavioural phenomenon which I had previously overlooked: the tendency for stock prices to be higher on sunny days.