Super Bowl 44 as a Dow Jones Indicator

February 3, 2010

Prior to February 7th, there will be investors predetermining the Dow Jones Trend based on the outcome of Super Bowl 44. Will it be a bear (but not a Chicago Bear) market versus a bull market? Believers in the Super Bowl Indicator (SBI) accept that when an AFC team wins the Super Bowl then we can expect a decline in the stock market; whereas, if an NFC team wins then we can expect an increase in the stock market.

Including 2007, the SBI had an 80% success rate. Perhaps this is why Snopes.com, a site famous for debunking scams, could not give a definitive “True” or “False” answer. Instead, after some discussion about the SBI, the site leaves skepticism up to the reader. Snopes does post a warning from columnist Floyd Norris, “Anyone foolish enough… or credulous enough to believe a football game can forecast the stock market, probably should hire a money manager, or a psychiatrist, or both.”

At this point we are left wondering whether the Colts or the Saints will tell us if the recession will end soon or continue, perhaps stronger.

From the looks of the half-time show, you might want to invest in stocks for Diamond Foods and Dr Pepper Snapple among others. These companies will spend between $2.5M and $2.8M for a 30-second commercial to strengthen their branding. With THE WHO as the main attraction, the networks are indicating that an estimated 100 million viewers will be tuning in to be entertained by “rock’s most influential and robust performing artists.”

Now that’s an indicator you can bet on… GO TEAM GO!

Entry Filed under: Business Trends, Interesting Facts. Tags: , , .

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