Does The Winning Superbowl Team Predict The Success Of The Stock Market

February 2, 2017

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Although your team may not be playing in it, most of America will be watching Superbowl 51 Sunday night. A particular group of people who may be watching it intently are stock brokers and investors. There is a little known, and highly disputed, theory that predicts the U.S. economy based on which team wins the championship.  Dubbed the "Super Bowl Indicator," it has a surprisingly accurate prediction rate.  The NFL is broken into two conferences, the National Football Conference (NFC), which are the original teams of the NFL, and the American Football Conference (AFC), which are teams from the American Football League that merged with the NFL in 1970. The economic theory work like this, if a NFC team wins (Atlanta Falcons), it will be a bull market, meaning the stock market will be up for 2017.  If an AFC team wins (New England Patriots), it will be a bear market, meaning the stock market will fall for the year. Back in 1989, a New York Times editor noticed the correlation and thought it would be mindless fodder for discussion at parties.  However after a closer review of superbowl wins since 1967 through 2016, the indicator has been correct 91% of the time.  Although there is no scientific facts to back up the Super Bowl Indicator, it adds to many superstitions that investors believe, including the country that builds the tallest skyscraper is doomed for a market collapse. October is cursed as the crashes of 1929, 1987, and 2008 occurred in October and the "Sports Illustrated Swimsuit Indicator," suggesting the stock market in America does better when the cover model is an American rather than a foreign-born model.

SOURCE: Mental Floss

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