The Super Bowl Indicator

24 Jan

It has been deemed a Steelers/Packers showdown in Super Bowl XLV.

As economists and authors struggle to find a relationship for even the most unrelated items, such as in the book Freakonomics, and Outliers it shouldn’t surprise you that a relationship between the Super Bowl winner and the stock market has emerged over the past 50 years.

What Does Super Bowl Indicator Mean? This indicator is based on the belief that a Super Bowl win by the old AFL (AFC division) leads to a decline in the stock market for the coming year, and a win by the old NFL (NFC division) means the stock market will be up for the year.

Surprisingly (or unsurprisingly depending on how you look at it) the super bowl indicator has an accuracy rate of around 85% correct over the past years. That being said, we’ll continue our bets with our current methodology. Go Steelers!

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