Forget the news, chuck out your crystal balls and roll up your lunar-cycle charts. It turns out that music might just hold the key to predicting movements in the financial markets.
That’s according to Richard Morrish of Geneva-based fund management firm Peak Partners and portfolio manager of its recently launched Peak FX Performance Fund.
Music is at the heart of his investment approach, which combines Gann technical analysis (charts and angles) with musical intonation and harmonics to develop a proprietary “robust predictive technical system,” the firm said in announcing the launch of the new fund.
“The musical system is a key element within the model, as it is the best reflection of human behavior,” the company added.
For those of you still slightly baffled, Mr. Morrish explained:
“Like markets, music is based on hope and fear. Hope is the happy songs we listen to which make up 90% of our songs and fear is the sad songs that represent approximately 10% of the songs. The correlation to the markets is uncanny! Hope outweighs fear in almost the same percentage.”
He may be right. After all, anyone trying to use macroeconomic logic to trade the foreign-exchange market this year has had a rough run.
Still, one has to wonder what the current soundtrack to the market might be. With eight days left to save the euro, perhaps ’80s rock classic “The Final Countdown” might be appropriate. If not that, then REM’s “It’s End Of The World As We Know It” might have to do.
read more: Olympus Wealth Management
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