Many people are familiar with the Super Bowl indicator: If
an old AFL team wins the Super Bowl, the stock market will be down for the year
and if an old NFL team wins the Super Bowl, the stock market will increase during
the year. A new sports-related
stock market indicator is the home run/strikeout total for Major League
Baseball. As total home runs and strikeouts increase, the stock market
increases and as the total home run runs and strikeouts decrease, the stock
market decreases. Unfortunately, the researcher who discovered this
relationship argues the connection is reversed, so the change in the stock
market predicts the home run/strikeout total. Guess we won’t be able to use
this as a predictor of stock returns.
