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Market analyze on LCD screen
Market analyze on LCD screen
(Brian Jackson/Thinkstock)

Mars, Saturn misaligned? Be wary of patterns when investing

If you look for a pattern to predict the direction of the stock market, you’ll find it.

That’s the skeptic’s takeaway from an intriguing paper from Robert Novy-Marx, a finance professor at the University of Rochester, in the current issue of the Journal of Financial Economics.stocks

No, he doesn’t discuss the predictive qualities of hemlines, Super Bowl victories or Sports Illustrated Swimsuit Edition covers – quirky indicators that can attract a lot of attention because of their obvious lack of causality.