Super Bowl Indicator

AAA

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.

INVESTOPEDIA EXPLAINS '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. Sell In May And Go Away

    A well-known trading adage that warns investors to sell their ...
  2. Men's Underwear Index

    An unconventional measure of how well the economy is doing based ...
  3. Cardboard Box Index

    An index used by some investors to gauge industrial production ...
  4. Indicator

    Statistics used to measure current conditions as well as to forecast ...
  5. Leading Lipstick Indicator

    An indicator based on the theory that a consumer turns to less ...
  6. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock ...
Related Articles
  1. Making Sense Of Market Anomalies
    Investing

    Making Sense Of Market Anomalies

  2. World's Wackiest Stock Indicators
    Active Trading

    World's Wackiest Stock Indicators

  3. What are leading, lagging and coincident ...
    Investing

    What are leading, lagging and coincident ...

  4. Economic Indicators To Know
    Retirement

    Economic Indicators To Know

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center