Does the super bowl affect the stock market

Maybe it is superstition, maybe there is some truth to it, but many investors believe that the outcome of the Super Bowl has an effect on the stock market. It seems a bit crazy to make financial decisions based on a football game.

However, many people place money on one team versus another for the big game by betting, so does the same thing carry through in your long-term investments? The Super Bowl is the final game of the year for the National Football League. It usually occurs at the end of January or beginning of February but always on a Sunday.

The NFL, unlike many other professional sports leagues, uses two different bracket systems. The two parts the AFC and NFC meet at the Super Bowl. So, how does this game affect the stocks? The Dow Jones, statistically speaking, tends to do better on the years that a team from the NFC wins the Super Bowl.

How the Super Bowl Affects the Stock Market - dikykex.web.fc2.com Blog - Saving Advice Articles

On years a team from the AFC wins, the Dow tends to end the year lower. However, there is no logical reason why the should other than circumstantial evidence. This means that the effects of the big game on stocks are simply coincidence.

The two obviously would not cause one another, but even though they may seem to have a correlation over time, it is just by chance. They are not causal. However, there is a much more likely correlation between the Super Bowl and stocks that no one is really paying attention to.

The Super Bowl is held in a different city each year and it seemingly boosts the economy of the area in which it is held. A University of Connecticut study published in showed that the returns on stocks for firms and companies based in the city in which the big game is held increase significantly. In fact, on average, the returns increase by 9. Now, that is something to put your money on and makes far more sense than an NFC vs.

It will be interesting to read the results of the economic rewards of Super Bowl 51 in Houston as well as the results of the Dow with the New England Patriots AFC win. So it should be a good year for energy stocks, but potentially a worse year for the broad market.

As you quite rightly said, correlation is not causation. However, your proposal is not fool proof either. You would still need to correctly predict which specific businesses would benefit from the superbowl being held in their city. Mail will not be published required.

Super Bowl Indicator

You can use these tags: Home Articles Tips Forums Blogs Tools. Join Now or Login. Where to Really Put Your Money During the Super Bowl The Super Bowl is held in a different city each year and it seemingly boosts the economy of the area in which it is held.

What are your thoughts?

Effects of Super Bowl Winner on Stock Market | Finance - Zacks

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