Stock purchase and the weather: Individual differences

Evidence in psychology and finance suggests that lack of sunlight influences people’s moods. In this paper, using a sample of individual accounts from a large commercial bank, we document differential effects of cloud coverage on individuals’ tendencies to buy and sell equity. We find that men, low income, and young individuals are net buyers on cloudy days. These findings are consistent with widespread evidence suggesting that gambling is more pronounced within individuals suffering from mood disorder/depression, and the over-representation of men, low-income, and young persons in the population of gamblers.