Boston Snow Indicator

AAA

DEFINITION of 'Boston Snow Indicator'

A market theory that states that a white Christmas in Boston will result in rising stock prices for the following year. For example, in Christmas of 1995, Boston received snow and the following year, the S&P 500 increased by more than 20%.

INVESTOPEDIA EXPLAINS 'Boston Snow Indicator'

As you may have guessed, there is no logical correlation between whether there is snow in Boston on Christmas and the performance of the stock market. Any incidence of a white Christmas in Boston and bullish market performance in the following year are purely coincidental. This may be why this indicator is also referred to as the "BS indicator".

RELATED TERMS
  1. Sports Illustrated Swimsuit Issue ...

    An indicator based on the nationality of the model on the cover ...
  2. Aspirin Count Theory

    A market theory that states stock prices and aspirin production ...
  3. Skirt Length Theory

    The idea that skirt lengths are a predictor of the stock market ...
  4. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a ...
  5. Leading Lipstick Indicator

    An indicator based on the theory that a consumer turns to less ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Investing Basics

    8 Gifts For Financial Geeks

    Put one of these unique offerings under someone's tree this year.
  2. Personal Finance

    The Frosty, Festive World Of Investing

    From Santa Claus rallies to evergreen loans, Wall Street can be a veritable winter wonderland for investors.
  3. Retirement

    Economic Indicators To Know

    The economy has a large impact on the market. Learn how to interpret the most important reports.
  4. Options & Futures

    The Most Important Technical Indicators For Binary Options

    Trading binary options is not for the novice, but if you're ready to delve in, get to know the best technical indicators.
  5. Investing

    What’s The Latest Market Volatility Strategy?

    A minimum volatility (min vol) strategy would be top of mind for investors. In today’s market climate the case for min vol is particularly timely.
  6. Investing

    Are You Ready To Invest In The Tech Sector?

    Tech stocks, particularly those of mature tech companies, are well positioned and offer meaningful upside potential in the near-term.
  7. Economics

    This Is A Small Country With Huge Potential to Grow

    Trinidad and Tobago's increased revenue and economic success have been primarily generated by its energy sector, but it still might be best to diversify.
  8. Economics

    The World's Top 10 Economies

    A look at the top ten economies in the world.
  9. Investing

    How Gilead Sales Have Grown Conspicuously?

    Learn how Gilead sales have climbed from $1.33 billion in 2004 to $24.89 billion as of the end of 2014.
  10. Economics

    What's Demand Elasticity?

    Demand elasticity is the measure of how demand changes as other factors change. Demand elasticity is often referred to as price elasticity of demand because price is most often the factor used ...

You May Also Like

Hot Definitions
  1. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  2. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  3. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  4. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
  5. Fringe Benefits

    A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are ...
  6. Irrevocable Trust

    A trust that can't be modified or terminated without the permission of the beneficiary. The grantor, having transferred assets ...
Trading Center