This is interesting. Have you ever hear of the “Super Bowl Stock Market Predictor"? Apparently if you invest based on which division the winning team of the Super Bowl is in, you will find yourself either richer or poorer.
In less than two weeks, the two best teams in the NFL will face off in New Orleans for Super Bowl XLVII. The winning team will receive the Lombardi Trophy, along with rings, hats, T-shirts and perhaps even a victory parade in its home city.
But could the outcome also tell investors what’s going to happen to the U.S. stock market over the next 12 months, allowing them to invest accordingly? That’s exactly what some economists say will happen - and has been happening since 1967.
The phenomenon is called the “Super Bowl Stock Market Predictor.” It posits that if an NFC team wins the prize, the stock market will end the year up, while if an AFC team wins, the market will end the year down.
This seems like a ridiculous correlation, but from 1967 to 1988 the indicator was right 90.9 percent of the time - 20 out of those 22 years. Since then the accuracy has decreased, but it still hovers at around 76.7 percent - a predictor that still works better many of the methods espoused by professional investors.
Even though the predictor isn’t as accurate as it used to be, using the predictor would still put an investor ahead of the curve.
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