In 1978 sportswriter Leonard Koppett discovered an odd coincidence between the Super Bowl winner and the stock market dating back to the first Super Bowl in 1967. Put simply, the indicator suggests that if an AFC team (Cincinnati Bengals in the 2022 Super Bowl) wins, the stock market will decline in the coming year. If the NFC team (Los Angeles Rams in the 2022 Super Bowl) wins, the stock market will increase in the coming year. Over the past 55 years, this “Super Bowl Indicator” oddly enough has been correct 74.5% of the time.
Throughout history people have noticed that other bizarre correlations exist, such as the Lipstick Indicator. Though these correlations exist, they are merely amusing coincidences. Correlation is a relationship between two or more things. Causation means that one thing affects another. Clearly, common sense tells us there is no causation between the winning Super Bowl team and the valuations, earnings, and profitability of stocks. So, should you follow and employ these “indicators” in your own investment portfolio? The answer is an empathic “no!” However, these topics serve a bigger question. What is your investment strategy for your future life savings? The team at GreenUp Wealth Management is here to design and quarterback your financial game plan with a personalized play book to help you win over the long run.
GreenUp Wealth Management is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.