It’s game time! The Super Bowl is the most watched television program of the year. That’s probably not breaking news to you. But are you aware that as millions of Americans are eating, drinking or in other words watching their waste sizes grow and cheering their favorite teams on to victory, that they are also watching a game that determines the fate of the stock market? Studies show that there is a relationship between the outcome of the Super Bowl and the performance of the stock market. It’s known as the Super Bowl Stock Market Predictor (SBSMP).
The National and American Football Leagues merged in 1966 and created the Super Bowl as the focus of both leagues seasons. According to the SBSMP, stock prices will rise during years in which the NFC wins the Super Bowl and decline in years the AFC wins. This prediction applies to all shares, whether included in the New York Stock Exchange, S&P 500, Dow Jones Industrial Average, American Stock Exchange, or NASDAQ.
The SBSMP correctly predicted the sign of the annual return for the NYSE twenty nine out of thirty six times. That’s over eighty percent accurate. For a more detailed look into the correlation between the Super Bowl victors and the stock market, look at this report: http://www.uwlax.edu/BA/fin/Research/Super%20Bowl%20Predictor.pdf. This site provides charts and data to support this theory. As well as an in depth look as to why the phenomenon works! For now, let’s watch the game and worry about the stock market tomorrow!
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