Filed under: Indices, Market matters, Business of sports

Of all the idiotic predictors of market performance (and I would argue that nearly all of them are idiotic: predicting the future direction of the stock market as a whole is darn near impossible), the Super Bowl Indicator has to be the dumbest.

Here’s how it work: When an “original” National Football League team wins the big game, the market rises; it falls when the winner is a team that joined the NFL in the merger with the American Football League in 1970. The indicator has an 81% success rate historically.

So if the Patriots win the Super Bowl, that’s a bad omen.

The Wall Street Journal devoted an article to this nonsense today [subscription], without any hint of irony or explanation of how incredibly dumb this indicator is.

Continue reading The Super Bowl has nothing to do with the stock market

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This entry was posted on Wednesday, January 30th, 2008 at 1:23 am and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.