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Many investors think investing based on planetary alignments is hogwash.

Think again.

In a report dated July 7, RBS says a study of correlations between moon phases and behavior of financial markets "suggests a medium-to-long term trading strategy...can significantly increase profits."

If you invested 1000 pounds in the FTSE 100 in 1984, by now you'd have about 5,130 pounds, RBS finds. (The FTSE is an index of the UK's 100 most valuable public companies.) But if you bought the FTSE on the new moon and sold on the full moon, you'd have 12,116 pounds, or more than double a passive, buy-and-hold, strategy. Not sure if trading costs are included here.

RBS also studied the S&P 500, and found that 1000 pounds invested in 1928 is now worth 64,000 pounds. But using a moon trading strategy, that same 1000 pounds today is worth 1,500,000 pounds.

Holy Neil Armstrong!

"This analysis supports the theory of a correlation between index prices and moon phases."

A new moon, RBS explains, traditionally symbolizes a period of low energy (a good time to buy, in other words), and a full moon a period of high energy (sell).

The next new moon is August 10. The next full moon is August 24.

"Sheer Lunacy staring at the Heavens," was written by Tom Pelc and Dmytro Bondar.
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