the arizona cardinals and the stock market
To highlight how theories may become self-fulfilling, in my undergraduate class yesterday we talked about the relationship between who wins the Super Bowl and that year’s stock market performance. Apparently, if an NFC team wins, the stock market will be up that year—-the relationship is quite strong, though obviously the relationship is fraught with all kinds of problems. There’s a whole literature citing and discussing the NFC-stock market relationship. So, if the Arizona Cardinals win on Sunday, you know what to do.
Here’s a related piece, from Journal of Finance (2007), on “sport sentiment and stock returns” (also discussed here by Brayden).
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“if an NFC team wins, the stock market will be up that year”
A year ago, Feb. 3, 2008, the Giants (NFC) played the Patriots (AFC) in Superbowl 42 (I mean Superbowl LXII). The Dow was at about 12,700. The Giants won. Should we have loaded up on stocks? The Dow closed out the calendar year at about 8800, down nearly 4000 points (30%) and the last trading day before this year’s Superbowl, the Dow stood at 8000.
If you want to make money on the Superbowl, take the Steelers giving 6.5, and the under 46.5.
Jay Livingston
January 31, 2009 at 4:41 pm
Well, the NFC investing strategy requires patience and time.
tf
January 31, 2009 at 9:29 pm
Please do all your research before posting information like this. It is based off of the original NFL/AFL teams. So in this case the Steelers are considered NFC since they are a part of the original NFL teams.
Brian
February 2, 2009 at 2:39 am