NFL playoffs flash strong 'buy' signal for stocks

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Who's going to win this year's Super Bowl?

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  • 133877
    Green Bay
    35%
  • 133878
    Pittsburgh
    62%
  • 133879
    What's the Super Bowl?
    3%

VoteTotal Votes: 1317

Looking for a winning bet on this year’s Super Bowl? Buy stocks.

That’s the conclusion of a tongue-in-cheek analysis by Capital IQ, a unit of Standard & Poor's, that looked at correlation of stock market performance to the past winners of the NFL championship game.

The results of the analysis show that the upcoming matchup of the Pittsburgh Steelers and the Green Bay Packers should produce a no-lose bet on stocks. In the past, the U.S. market rose by more than 20 percent in the year following a Super Bowl played by either team.

The average annual return for the S&P 500 index when the final game includes the Steelers is 25 percent; if they win, market returns average 26 percent, according to the study. Even when Pittsburgh lost Super Bowl XXX in 1996, the market rose 23 percent the following year.

When the Packers play the Big Game, the stock market gain averages 24 percent. When they’ve won, the market rose an average 23 percent; when they’ve lost, the gain was 29 percent, the study said.

Say what you will about the Chicago Bears playoff performance Sunday, the record shows they just don’t measure up when it comes to stock market performance. When the team won its Super Bowl in 1986, the market rose just 19 percent. Stocks gained 5.5 percent after the Bears' loss in 2007.

The hapless New York Jets, who lost to the Steelers in the AFC finals Sunday, are no help at all to investors. The S&P 500 fell 8 percent after their one and only Super Bowl appearance in 1969, according to the study.

Odds makers looking to handicap this year’s outlook for stocks might want to factor in a few other variables tracked by the folks at Capital IQ, including this year’s Super Bowl venue, Dallas. Games played in Texas brought an average 8 percent decline in stocks - the worst performance of the eight states that have hosted the NFL's final game. Throw in another 3 percent decline for domed stadiums like the site of this year's game.

On the hand, both teams have already won the Super Bowl at least once; the average market return after a repeat victory by a past winner is 13 percent, the study said.

To be sure, there’s no conceivable connection between the outcome of a single football game and the 12-month outlook for the 500 stocks that make up the S&P index. As your broker usually mumbles as he’s touting his latest recommendation, “past performance is no guarantee of future results.” Capital IQ says as much in a disclaimer, noting that the analysis is “not intended as a basis for investment decisions.”

Still, over the years, the so-called “Super Bowl” indicator has had a better predictive record than many Wall Street analysts.

Discuss this post

I love the Steelers and love the facts of the stock market going in an upward trend. Get ready for retirement. GO STEELERS.

  • 1 vote
Reply#1 - Tue Jan 25, 2011 12:58 PM EST

The market will be a winner this year and so will the steelers.!!!!!!!!!!!!!!

  • 1 vote
Reply#2 - Tue Jan 25, 2011 1:00 PM EST

no way. go packers

    Reply#3 - Tue Jan 25, 2011 2:19 PM EST

    GOOOOO Steelers!!!!!!!!!!

      Reply#4 - Tue Jan 25, 2011 3:01 PM EST

      Go STEELERS!

        #4.1 - Tue Jan 25, 2011 4:29 PM EST
        Reply

        Go STEELERS!

          Reply#5 - Tue Jan 25, 2011 4:27 PM EST

          One can get a much better Super Bowl indicator of next year's stock market performance when one includes the following additional factors into the analysis:

          1)  average hair length of offense and defense players ratios against the mean hair length of the NFL cheerleaders,

          2) ratio of game related twitter activity vs. a baseline level of Madden 2011 online web play,

           3)  noting a complex factor that includes La Nina weather effects, hemorrhoid outbreaks amoungst Fortune 500 CEOs, average cost of hard drive space per single megabyte, and the salt content in BK fries.  Really.  It works.

            Reply#6 - Tue Jan 25, 2011 4:38 PM EST

            I would not doubt that this is the "ACTUAL" type of thinking behind the analysts...which might as well be.

            The majority of Americans will believe and follow anything. The other richest 2% of the population apparently know better.

            Seems to me that the analyists exist only because they are funded by the the richest 2%.

            Being an analyst, probably is a pretty fun job. They are hand in hand with "creative" advertising.

              #6.1 - Wed Jan 26, 2011 11:19 AM EST
              Reply

              Finally, "The Wall Street Secret" has been revealed. This man is a "Senior Producer."

              What does he produce, "Natural Gas"?

              Only in America!

                Reply#7 - Tue Jan 25, 2011 5:57 PM EST

                Yeah baby go Steelers.Greenbay loses stocks go up .Only in America!

                  Reply#8 - Tue Jan 25, 2011 11:27 PM EST

                  I love to watch steelers especialy Troy Palamalou's flying attack on QB and knock the ball down then recover and score. Good luck steelers, go.....

                    Reply#9 - Wed Jan 26, 2011 10:23 AM EST

                    I love to watch steelers play, especialy amazing flying attackof TROY PALAMOLU on QB....... Go steelers get the ring.......

                    • 1 vote
                    Reply#10 - Wed Jan 26, 2011 10:28 AM EST

                    Im a dallas fan ,but for my vote ,i'm going PITTSBURG>>>....!!!!!!!

                      Reply#11 - Wed Jan 26, 2011 5:19 PM EST

                      im 'm a dallas fan ,but for my vote i'm going pittsburg steelers..!!!!<<<<<

                        Reply#12 - Wed Jan 26, 2011 5:21 PM EST

                        I am a die hard Steeler Fan, I feel bad that green bay has to play us and not even get one ring. Maybe some Real Nice STEELER will let them see it for a moment. GOOOO STEELERS. Can you tell I live in the Burg.

                          Reply#13 - Wed Jan 26, 2011 7:21 PM EST
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