Sports Illustrated Swimsuit Issue Indicator

Definition of 'Sports Illustrated Swimsuit Issue Indicator'


An indicator based on the nationality of the model on the cover of the Sports Illustrated swimsuit edition. The Sports Illustrated Swimsuit Issue Indicator attempts to provide insight into stock market returns for that year. The indicator suggests that when the cover model is from the U.S., the S&P 500 will generate a return above its historical rate, while a non-American cover model leads to underperformance by the S&P 500 for the year.

Investopedia explains 'Sports Illustrated Swimsuit Issue Indicator'


Between 1978 and 2008, the average return of the S&P 500 was 10.5%; when the cover model was American, the average annual return of the S&P 500 was 13.9%. When the cover model was non-American, the average annual return for the S&P 500 was 7.2%. For example, the S&P 500 was up 34.1% in 1997 when Tyra Banks graced the Sports Illustrated cover. The indicator was first coined by the Bespoke Investment Group.


Filed Under:

comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific benchmark, such as a SPDR. Unlike actively managed ETFs, passive ETFs are not managed by a fund manager on a daily basis.
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another market so that it balances out. So when examining a specific market, if all other markets are in equilibrium, Walras' Law asserts that the examined market is also in equilibrium.
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious debt when government leaders use borrowed funds in ways that don't benefit or even oppress citizens. Some legal scholars argue that successor governments should not be held accountable for odious debt incurred by earlier regimes, but there is no consensus on how odious debt should actually be treated.
Trading Center