Home Trading strategies The Super Bowl Indicator Trading Strategy (Fun, But Spurious Correlation)

The Super Bowl Indicator Trading Strategy (Fun, But Spurious Correlation)

What is the Super Bowl Indicator? We believe it’s a fun but totally spurious and unreliable predictor of stock market performance. Let’s explain what the indicator is about and how it has performed.

The Super Bowl Indicator trading strategy

The Super Bowl Indicator is a popular but extremely unscientific theory that suggests that the stock market’s performance in a given year can be predicted based on the outcome of the Super Bowl. The Super Bowl Indicator goes like this:

If a team from the American Football Conference (AFC) wins, it is said to be a bearish sign for the market, while a victory by a team from the National Football Conference (NFC) is considered bullish.

Who invented the Super Bowl Indicator?

The indicator was first proposed in 1978 by Leonard Koppett, who observed that it had never been wrong up to that point.

However, since then, the indicator has been correct “only” about 67% of the time. However, there is no economic or financial justification for the correlation between the Super Bowl and the stock market.

Despite its lack of scientific basis, the Super Bowl Indicator remains a popular topic of discussion among investors and football fans alike. It is a fun and harmless way to add a bit of excitement to the Super Bowl experience.