GIANTS WIN, SO DOES WALL STREET…

Giants win, so does Wall Street…Apparently that may be the case except perhaps if they beat the Patriots because in 2008 the indicator didn’t actually hold up and the S&P fell 38.49% and the financial crisis happened.

In addition to range of stock market indicators that includes the length of a skirt, there is the Super Bowl Stock Market Indicator — defined as an indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in the stock market for the coming year, and that a win for a team from the old NFL (NFC division) means the stock market will be up for the year.

Investopedia.com explains that the ‘Super Bowl Indicator’ “historically speaking the Super Bowl indicator boasts an 80% accuracy rate, remember the old maxim: correlation does not imply causation. In 2008, despite the New York Giants (NFC division) winning the Super Bowl (indicating a Bull Market), the stock market suffered one of the largest downturns since the Great Depression. Though the indicator is an interesting take on predicting the stock market, by no means should the correlation dictate an individual’s portfolio construction.”

However, the Journal of Finance published an article by Thomas Krueger and William Kennedy based on a study that found the Super Bowl Indicator had been correct an astonishing 91% of the time from 1967 though 1988, according to the Business Insider. See how a recent study proved this indicator, over a 42 year timeframe, is a sound investment strategy.

In case you missed the game NY Giants won 21-17 against the NE Patriots.

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