Every year commentators and guests of CNBC, Fox Business & Bloomberg talk about the “January Effect.”
According to the website investopedia.com the January Effect is: “A general increase in stock prices during the month of January. This rally is generally attributed to an increase in buying, which follows the drop in price that typically happens in December when investors, seeking to create tax losses to offset capital gains, prompt a sell-off.”
Personally I'm not a believer but that’s me. More importantly with the Super Bowl less than one week away, the financial “Experts” have failed to mention the ever so important “Super Bowl Market Indicator.”
Since Super Bowl 1 (1967) who is Wall Street’s favorite team?
The Pittsburgh Steelers. Steelers Championship's have produced an average S&P 500 gain of 16.88% from Super Bowl Monday to December 31st. Very Impressive.
Unfortunately for investors, Giants and Patriots victories have generated not so impressive results. In the years the Giants won the Super Bowl, the S&P 500 lost an average of 6.6% and Patriots victories produced an average loss of 3.4%.
As a lifelong Giants fan and professional investor I find this quite troubling so I’ll leave you with one final statistic: NFC victories produced an average S&P 500 gain of 10.2% vs. the AFC's +3.1%. Go NFC!
Finally due to the wonderful workings of Senator Dodd and Congressman Frank I must say this article is for entertainment purposes only and is not a recommendation to buy or sell securities. Enjoy the Game.