Monday, February 6, 2012
The Super Bowl indicator is one of the indicators that investors and traders watch for. The Super Bowl indicator “is based on the premise that if the Super Bowl Champion came from the old AFL, now known as the AFC, that the year will bring a down trend in the stock market while a winner from the old NFL, now the NFC, will lead to a bull market.”
Investors and observers debate and dismiss the indicator, but it has proven to be accurate about 80% of the time. This year at the super bowl, the New York Giants are member of the NFC and the New England Patriots are a member of the AFC. Since the Giants won, the Super Bowl indicator indicates that we should have a bull market for the “SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) this year.” Hopefully this coming year will live up to the prediction. When these two teams played each other in 2008, the Giants won, which would indicate an up market. However, 2008 brought the financial crisis and the stock market declined, so we will see if the indicator is accurate this year.
See John Nyaradi, Super Bowl Indicator: Buy or Sell?, Seeking Alpha, Feb. 5, 2012.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.