Love And The Stock Market

With Valentine's Day approaching, I have decided to dedicate my latest research to love and the stock market. Are these two concepts more similar than we ever imagined and is there any correlation among them? Love is hard to define, but I can always rely on statistics. Researching the topic I came across an interesting study that was published by a team of relationship experts in Germany.

The Study

Obviously, breakups occur throughout the year. However, there are two noteworthy time periods that are characterized by breakup rates skyrocketing. From November until two weeks before the Christmas holidays the number of couples deciding to separate increases at a particularly rapid pace.

(Click on image to enlarge)

Trend of breakup rates over the year

Source: Beraterteam.info

On the other hand, during the Christmas holidays themselves, the frequency of separations decreases for a short time. The second peak in breakups occurs in the spring, and they once again start increasing rapidly from February onward. Among the reasons for this are behavior patterns triggered by people’s New Year’s resolutions. Another important reason is the approach of warmer and sunny weather, which provides a boost to confidence and vitality. People are more optimistic and believe that finding new partners will be easy.

Should one invest in the stocks of dating services?

With that in mind, I would like to analyze the correlation between the stocks of dating service providers and the data presented above.

Momo (Nasdaq: MOMO), also known as "Tinder of China", is one of the top online dating platforms. It started out as a social networking app, but gradually evolved into a platform for online dating and Live videos.

The stock of Momo enters a strong seasonal period from February until April, in the same time period when the break-up rate rises to one of its annual peaks. Let us take a closer look at the statistics.

Seasonal Chart of Momo Inc over the past 6 years

(Click on image to enlarge)

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Comments

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Monica Kingsley 2 months ago Contributor's comment

I like the lighthearted tone describing life and stock market realities. Interesting read for particular segments of interest. I still like stocks :D