Super Bowl Investing

This Sunday is the 43rd Super Bowl which pits the Pittsburgh Steelers against the Arizona Cardinals. The Steelers are currently seven-point favorites, but did you know of the connection between the stock market and the Super Bowl?

It turns out there’s a very simply rule. Whenever an original member of the NFL wins, the Dow rallies that year. When an old AFL team wins, the Dow falls. This year makes it easy because both teams are old NFL teams. Historically, the indicator has worked 79% of the time.

I should add that I don’t believe in the indicator; it’s what we quants call “coincidence.” Just like any Super Bowl, the real winners are the advertisers.

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