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. Indicator

    Indicators are statistics used to measure current conditions ...
  2. Sell In May And Go Away

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

    An unconventional measure of how well the economy is doing based ...
  4. Harvard MBA Indicator

    A long-term stock market indicator that evaluates the percentage ...
  5. Leading Lipstick Indicator

    An indicator based on the theory that a consumer turns to less ...
  6. Cardboard Box Index

    An index used by some investors to gauge industrial production ...
RELATED FAQS
  1. What are leading, lagging and coincident indicators? What are they for?

    An indicator is anything that can be used to predict future financial or economic trends. For example, the social and economic ... Read Full Answer >>
  2. What are the Basel III rules, and how does it impact my bank investments?

    The Basel III rules are a regulatory framework designed to strengthen financial institutions by placing guidelines pertaining ... Read Full Answer >>
  3. What advantages do corporations have over privately held companies?

    The chief advantage that most publicly traded corporations enjoy – and the primary reason why private companies decide to ... Read Full Answer >>
  4. How are labor and capital affected by the balance of trade?

    The balance of trade, or BOT, the net of exports and imports for a given country, also known as the current account, is a ... Read Full Answer >>
  5. Where did the term "capitalism" come from?

    The term capitalism originates from the Latin word capitalis," which literally means "head of cattle." Capitalis comes from ... Read Full Answer >>
  6. What are some examples of Cash Flow from Financing (CFF)?

    The cash flow statement is a financial statement showing the net change in cash for a company in a given period. Entries ... Read Full Answer >>
Related Articles
  1. Investing

    Making Sense Of Market Anomalies

    Stocks sometimes thwart the efficient market theory by showing some very unusual patterns.
  2. Active Trading

    World's Wackiest Stock Indicators

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

    Economic Indicators To Know

    The economy has a large impact on the market. Learn how to interpret the most important reports.
  4. Investing Basics

    What's the Primary Market?

    The primary markets are where investors can get first crack at a new security issuance.
  5. Investing

    Wizards Of Odd: A Trip To Tech Land

    I spent a couple of days in Silicon Valley, and here are some key lessons I learned after meeting with a number of tech CEOs and venture capitalist.
  6. Investing

    Meet The Advisors To The Richest People In The U.S

    Celebirty financial advisors to the rich can offer important money lessons anyone can learn — as well as a whole host of mistakes to avoid.
  7. Mutual Funds & ETFs

    Which ETF is the Best Bet: VTI or IWV?

    A look at two quality ETFs that offer diversification, low expense ratios, and exposure to the total market.
  8. Entrepreneurship

    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?
  9. Investing

    What Are The Latest News On The Beer Industry?

    Beer isn’t a traditional commodity, as there are no futures markets associated with it, but it is considered an alternative investment.
  10. Professionals

    What is a SWOT Analysis?

    SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. SWOT analysis is a management tool used to identify strategies for success. It may be used to guide individual thinking, group ...

You May Also Like

Hot Definitions
  1. Fiduciary

    1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets ...
  2. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  3. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  4. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  5. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
Trading Center