Monday, February 4, 2013

Superbowl Predictor AFC Wins Markets Should Finish Lower This Year

The Superbowl Predictor is if an original NFC team wins, markets will be bullish.  If an original AFC team wins, the markets will be bearish. Statisticians estimate the correlation to be about 75% accurate so it is something fun to follow. San Francisco 49er's are an original NFC team as well as the Cleveland Browns, Baltimore Colts and Pittsburgh Steelers. Thus, this Superbowl essentially has two NFC teams so everything is going the bulls way these days since the bulls cannot lose, the markets should go up despite who won.

The Baltimore Ravens are the Superbowl Champions this year, despite a second half come back from San Francisco after a long power outage. Perhaps the bookies needed the lights to fade a while to allow the 49er's back in the game, which worked, but San Francisco fell short as the clock ran out. In keeping with the spirit of the indicator, and the need for a winner and loser. The Baltimore Ravens are in the AFC and the 49er's in the NFC, thus, the AFC wins, and the nod will be given to the market bears for this year. We will check back in December to see how it all works out.

The funny thing with this indicator is that the Giants (NFC) won against the Pats (AFC) in the 2008 Superbowl.  Do you remember what happened in 2008? Yes, an epic market crash, so always take this indicator with a healthy grain of salt, or perhaps a grain of Wheaties.

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