Super Bowl Indicator

DEFINITION of 'Super Bowl Indicator'

An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in the stock market for the coming year, and a win for a team from the old NFL (NFC division) means the stock market will be up for the year.

BREAKING DOWN 'Super Bowl Indicator'

Though historically speaking the Super Bowl indicator boasts an 80% accuracy rate, remember the old maxim: correlation does not imply causation. In 2008, despite the New York Giants (NFC division) winning the Super Bowl (indicating a Bull Market), the stock market suffered one of the largest downturns since the Great Depression. Though the indicator is an interesting take on predicting the stock market, by no means should the correlation dictate an individual's portfolio construction.

RELATED TERMS
  1. Super Regional Bank

    A mid-sized bank that has a significant presence in a geographical ...
  2. Near Field Communication (NFC)

    A wireless technology that allows users to make payments by placing ...
  3. Division Of Investment Management

    The Division of Investment Management is a branch of the U.S. ...
  4. Super NOW Account

    An account created in 1982 that offers a higher interest rate ...
  5. Division Of Corporate Finance

    The Division of Corporate Finance is a branch of the U.S. Securities ...
  6. Super Tuesday

    Super Tuesday refers to the date in the U.S. presidential primary ...
Related Articles
  1. Markets

    Are Super Bowl Ads Worth Their High Cost?

    Are Super Bowl ads worth the investment? A look at the cost and how they're received.
  2. Insights

    Super Savings for Your Super Bowl Party? Bet on It

    Prices for wings, avocados and TVs are all coming down, which will make your Super Bowl 50 festivities less costly.
  3. Markets

    These Free Super Bowl Ads Happened (BUD)

    The average 30-second Super Bowl cost marketers $5 million in 2016. But these companies benefited from free advertising during and after the game.
  4. Trading

    World's Wackiest Stock Indicators

    Can butter production help you predict the market's next move? Find out here.
  5. Markets

    How Super Tuesday Hurts – Then Helps – the Market

    The S&P 500 rose in the week after Super Tuesday in 1992, 1996, 2000, 2008 and 2012, but not in 2004.
  6. Markets

    How The NFL Makes Money

    The National Football League is the most successful sports league in the world. How does the NFL make money, and what is its strategy to stay on top?
  7. Investing

    Which NFL Franchise is Worth the Most (and Why)?

    What is the most valuable franchise in the NFL? Are any other franchises close to the top dog? Where does your favorite team rank?
  8. Markets

    Erskine Bowles: Trump's Economic Plan Impossible

    Erskine Bowles has an impressive track record. Here's why he thinks Donald Trump's economic plan is impossible.
  9. Financial Advisor

    Top 10 Most Valuable Sports Teams in 2015

    Cleats, pads and profits: we take a look at the top 10 most valuable sports teams in the world.
  10. Managing Wealth

    Don't Judge A Charity Based On Administrative Costs

    It is unwise to base charitable giving on administrative costs.
RELATED FAQS
  1. How is minimum transfer price calculated?

    Discover how to calculate the minimum transfer price for goods and materials that have been transferred between multiple ... Read Answer >>
  2. How does transfer pricing affect managerial accounting?

    Learn how transfer prices affect managerial accounting in terms of divisions' incentives to deal with each other, performance ... Read Answer >>
  3. What taxes will I pay if I win a lot of money while gambling in Las Vegas?

    Travel to Vegas and try to win big at the casino; but before you do, make sure you understand the tax laws that govern gambling ... Read Answer >>
  4. Does a negative correlation between two stocks mean anything?

    Learn what the concept of negative correlation means, understand how it is generally calculated and see how it is used in ... Read Answer >>
  5. How does correlation affect the stock market?

    Learn about the role correlation plays in prudent stock market investing, and how the correlation coefficient is used to ... Read Answer >>
  6. How do I find positive correlation in the stock market?

    Learn how positive correlation is found in the stock market, how correlation is calculated and how positive correlation is ... Read Answer >>
Hot Definitions
  1. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  2. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  3. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  4. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  5. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  6. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
Trading Center