Tuesday, February 5, 2008
Continuance of the Super Bowl Stock Market Predictor
As we all know by now, the New York Giants are the Super Bowl XLII champs! But what does this mean for the future of the stock market? Based on my previous post about the Super Bowl Stock Market Predictor, stock prices will rise during years in which the NFC wins the Super Bowl and decline in years the AFC wins. The New York Giants are part of the NFC, therefore according to this theory we should see an overall rise in the annual return in all shares. Actual returns are generally the result of trends in the P/E ratio. So maybe we’ll see a rise in investments. For the time being, we’ll have to wait on the edge of our seats to find out if this theory holds true this year.
Sunday, February 3, 2008
Super Bowl Stock Market Predictor
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!
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!
Friday, February 1, 2008
Current Events Effect on the Economy
It rains in Brazil, terrorists attack, OPEC changes output levels, a natural disaster hits the U.S. What do all of these events have in common? The occurrences of these events all effect the economy, whether it is on a global or local scale. These incidents also shift the stock market in a measurable and consistent way.
Peter Navarro is the author of the book "If It’s Raining in Brazil, Buy Starbucks". According to this book, when rain interrupts a drought in Brazil, the price of coffee beans decrease. Therefore Starbucks along with other coffee vendors make more profits. Consequently their stock price increases.
Current events impact our economy everyday. Understanding how the news affects the market in advance could potentially make you a more profitable investor. This blog is designed to explore differenct case studies for a better understanding of why and how current events shape and change our economy.
http://www.amazon.com/Its-Raining-Brazil-Buy-Starbucks/dp/0071433198
Peter Navarro is the author of the book "If It’s Raining in Brazil, Buy Starbucks". According to this book, when rain interrupts a drought in Brazil, the price of coffee beans decrease. Therefore Starbucks along with other coffee vendors make more profits. Consequently their stock price increases.
Current events impact our economy everyday. Understanding how the news affects the market in advance could potentially make you a more profitable investor. This blog is designed to explore differenct case studies for a better understanding of why and how current events shape and change our economy.
http://www.amazon.com/Its-Raining-Brazil-Buy-Starbucks/dp/0071433198
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