Could a Giants Victory Mean a Great Year for the Stock Market?
When the Giants won Super Bowl 2012, the raucous crowds in the streets of New York City had an extra reason to celebrate: the stock market.
Granted, they probably didn’t realize at the time that the Super Bowl has been laughingly named a stock market indicator, joining the ranks of less dramatic indicators such as lipstick and high heels.
Business Insider reports that the Super Bowl indicator, while not official or flawless, says that the S&P 500 will make gains for one year if a team originally from the old National Football League (which is now the NFC division) of the NFL prevails. The NFC and AFC (from the American Football League) are the two divisions of the NFL created from the 1970 combination of the the two leagues.
And guess who can trace their roots back to the NFC? That’s right, the Giants.
Is It Just the Raving of Superfans?
Of course, we wouldn’t be too shocked if über-fans used the game to predict anything from the weather to their relationships, but this theory actually has legs. While it isn’t backed by scientific research, the Super Bowl indicator has had a 78% accuracy rate since 1967, when it came to light. And it has gone through academic testing as well, in the form of a Washington and Lee University finance professor investing according to the game’s outcome each year … and had he been investing personal funds, he says that he would have been twice as wealthy today.
A word of caution, though: When the Giants (NFC) beat the Patriots (AFC) in Super Bowl 2008, it was right at the tip of the 2008 financial crisis.
While it’s fun to think about, we don’t recommend investing based on touchdowns.
Image Credit: AP via CTV News
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