As you’ve probably heard by now, 2011 will be a banner year for investors. It’s an absolute lock, according to the venerable Super Bowl Indicator.
According to this theory, when the winner of the Super Bowl is a team from the old NFL the stock market soars. When the winner is from the old AFL, the market drops. Over the years, the SBI has been right about 80 percent of the time.
Fortunately for investors, this year’s game features two old school NFL teams — the Pittsburgh Steelers and Green Bay Packers.
But if you’re looking for a maximum market bounce, cheer for the Steelers.
The Steelers have won the Super Bowl six times and the S&P 500’s average return for those years was a stunning 26 percent, according to an analysis by Capital IQ, a provider of business and financial information solutions.
“That gives us a lot of reasons to root for the Steelers. … I can’t imagine why anyone would root for the Packers,” says Jimmy Haslam, minority owner of the Pittsburgh team and president and CEO of Knoxville-based Pilot Flying J, the largest travel center operator in the country.
Haslam, being the savvy businessman that he is, doesn’t buy into the Super Bowl theory.
“I cannot believe there’s anything to it,” he says.
If the SBI doesn’t do it for you, there are other exotic market indicators you may want to consider, like the “Butter Production In Bangladesh” theory.
Check out the butter theory and other indicators here: World’s Wackiest Stock Indicators
More thoughts on the Super Bowl Indicator:
Photo: Jassmine Alferez, of New York, slides across the ice in front of a Super Bowl XLV logo outside the NFL Experience Wednesday, Feb. 2, 2011, in Dallas. Snow and ice blanked the area Tuesday and temperatures are forecast to remain below freezing for several days. (AP Photo/David J. Phillip)