Super Bowl gauge says stocks to win big in 2013
The annual indicator says no matter which team wins, investors will have a very good year.
But this year, the prediction is a little odd. According to the indicator, stocks will go up this year no matter which team wins the championship.
The indicator says the market will rise when a team from the original National Football League wins the Super Bowl. This goes back to the time when there was also an American Football League in operation from 1960 to 1969. The AFL teams became part of the NFL in 1970.
This year, both teams hail from the original National Football League. Well, the Baltimore Ravens technically didn't exist until 1996, but the team originated from the Cleveland Browns, which was part of the NFL. So it counts, right? One could argue that the San Francisco 49ers might have a little more NFL cred, so maybe investors should be rooting for a 49er victory.
At any rate, it seems like this year's game is a big green light for jumping back into the market. But wait, let's look at what happened the last time two original NFL teams played each other. That happened in 2001, when the Ravens absolutely trounced New York Giants.
That was not the best year for the markets, according to the Wall Street Sector Selector site. The Dow Jones Industrial Average ($INDU) fell 7.1% and the Standard & Poor's 500 Index ($INX) fell 13.04%.
In other words, don't rely on one football game for your investing strategy this year. But if you want another sign that stocks might behave nicely this year, check out the "January effect." MSN Money's Charley Blaine writes that this indicator shows that a higher market (measured by the S&P 500) in January leads to a higher market for the year, and it's correct about 75% of the time.
The S&P 500 is on track to finish at 1,500, up 5.1% for the month, its best January since 1997.
More on moneyNOW
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] Equity indices continue receiving broad support with all but one sector-consumer staples-trading in the green.
Even though the market began the trading week on a cautious note, the slim losses from yesterday have already been wiped out. In fact, the S&P 500 is now higher by 0.3% for the week, while the Russell 2000 has added 0.8% since the end of Friday's session. Although the Russell has shown relative strength today, that has not been the case as of late. For the ... More
More Market News
Pipeline owners are making big profits on oil coming from North Dakota's Bakken fields. But a lot of natural gas continues to be flared due to low prices.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'