DEFINITION of 'Aspirin Count Theory'
A market theory that states stock prices and aspirin production are inversely related. The Aspirin count theory is a lagging indicator and actually hasn't been formally tested, so it is more a humorous hypothesis than a theory.
Next Up
BREAKING DOWN 'Aspirin Count Theory'
As stock prices fall, more and more people need pain relievers to get through the day. For example the Aspirin count theory would predict that as aspirin sales increase, the stock market's value decreases and vice versa.
RELATED TERMS

Australian Stock Price Riskless ...
A zerocoupon bond with a return linked to the Australian allordinaries ... 
Accelerator Theory
An economic theory that suggests that as demand or income increases ... 
Biased Expectations Theory
A theory that the future value of interest rates is equal to ... 
Expectations Theory
The hypothesis that longterm interest rates contain a prediction ... 
Breadth of Market Theory
A technical analysis theory that predicts the strength of the ... 
Dow Theory
A theory which says the market is in an upward trend if one of ...
Related Articles

Trading
7 Controversial Investing Theories
We take a closer look at the theories that attempt to explain and influence the market. 
Investing
Efficient Market Hypothesis
An investment theory that states it is impossible to "beat the market". 
Trading
Dow Theory: Current Relevance
By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.comThere is little doubt that Dow theory is of major importance in the history of technical analysis. Many of its tenets and ... 
Trading
Modern Portfolio Theory vs. Behavioral Finance
Modern portfolio theory and behavioral finance represent differing schools of thought that attempt to explain investor behavior. Perhaps the easiest way to think about their arguments and positions ... 
Investing
Understanding the Random Walk Theory
The random walk theory states stock prices are independent of other factors, so their past movements cannot predict their future. 
Markets
Interest Rate Predictions With Expectations Theory
The expectations theory uses longterm interest rates to predict future shortterm interest rates. 
Trading
Manipulating Facts to Fit a Theory: A Dangerous Trading Practice
This practice is common with experienced and new traders, and it can lead to huge losses. Find out how to avoid it. 
Trading
Dow Theory: Conclusion
By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.comDow theory represents the beginning of technical analysis. Understanding this theory should lead you to a better understanding ... 
Trading
Elliott Wave Theory Basics
Elliott believed that the movement of the stock market could be accurately predicted by charting patterns. Learn the basics of this theory. 
Trading
Dow Theory: Introduction
By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.comAny attempt to trace the origins of technical analysis would inevitably lead to Dow theory. While more than 100 years old, ...
RELATED FAQS

What are the differences between weak, strong and semistrong versions of the Efficient ...
Discover how the efficient market theory is broken down into three versions, the hallmarks of each and the anomalies that ... Read Answer >> 
What is the chaos theory?
The chaos theory is a complicated and disputed mathematical theory that seeks to explain the effect of seemingly insignificant ... Read Answer >> 
What's the difference between agency theory and stakeholder theory?
Learn how agency theory and stakeholder theory are used in business to understand common business communication problems ... Read Answer >> 
Is a good's production cost related to its value?
Learn about the history and debate regarding the metrics used to determine the value of a good and which theories place emphasis ... Read Answer >> 
Has the Efficient Market Hypothesis been proven correct or incorrect?
Explore the efficient market hypothesis and understand the extent to which this theory and its conclusions are correct or ... Read Answer >> 
Why is Game Theory useful in business?
Game theory was once hailed as a revolutionary interdisciplinary phenomenon bringing together psychology, mathematics, philosophy ... Read Answer >>