Why Tom Brady And The Patriots Might Not Be So Terrific For Stocks - AdvisorNews

Advisor News

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
  • Newswires
    • Special Access
    • NewsWires
    • Magazine
    Sign in or register to be a Special Access User.
    • Special Access
    • NewsWires
    • ★ DOL Rule News
    • Magazine
    • About
    • Advertise
    • Editorial Staff
    • Contact
    • Subscribe

    Get Social

    • Facebook
    • Twitter
    • LinkedIn
    Advisor News
    Advisor News RSS Get our newsletter
    Order Prints Share
    January 25, 2019 Advisor News No comments Views: 14

    Why Tom Brady And The Patriots Might Not Be So Terrific For Stocks

    Does the Super Bowl affect the stock market?

    By RYAN DETRICH 

    The Super Bowl indicator suggests that stocks rise for the full year when the Super Bowl winner comes from the original National Football League (now the NFC), but when an original American Football League (now the AFC) team wins, stocks fall. We would be the first to admit that this indicator has no connection to the stock market, but the data don’t lie—the S&P 500 Index has performed better, and posted positive gains with greater frequency, over the past 52 Super Bowl games when NFC teams have won. Of course, it’s worth noting that this didn’t work last year when the Eagles won the Super Bowl, and the S&P 500 lost 6.2 percent in 2018.

    A simpler way to look at the Super Bowl indicator is to look at the average gain for the S&P 500 when the NFC has won versus the AFC—and ignore the history of the franchises. This similar set of criteria has produced an average price return of 10.2 percent when an NFC team has won, compared with a return of 5.8 percent with an AFC winner. An NFC winner has produced a positive year 79 percent of the time, while the S&P 500 has been up only 63 percent of the time when the winner came from the AFC.

     

    Would you believe the numbers actually get worse when the Patriots are involved? That’s right—the S&P 500 has gained only 2.2 percent on average in years when the Patriots play in the big game. What about since Tom Brady has been the quarterback? The S&P 500 is down 3.0 percent on average! “Pats fans might be ecstatic that Tom Brady is starting in a record-breaking ninth Super Bowl, but market bulls don’t want to see the Pats win, as stocks are up only 1.5 percent for the year on average after a victory versus up 2.9 percent if they lose,” said LPL Senior Market Strategist Ryan Detrick. “Tom might be terrific, but maybe not in all markets.”

    A-Super-Bowl-appearance-by-the-New-England-Patriots-has-not-historically-benefited-markets.png (1167×1078)

    We would like to reiterate that we realize these calculations are in no way relevant to investors—but it sure is more fun to talk about the Super Bowl and stock market returns ahead of the biggest NFL game of the year  than  snowfalls and freezing temperatures. We hope everyone has a great Super Bowl Sunday and we wish both the Rams and Pats luck!

    FULL DISCLOSURE – LPL Research has an office in Boston and we have many Patriots fans, but the author of this piece sure isn’t one.

    IMPORTANT DISCLOSURES

    The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. The economic forecasts set forth in this material may not develop as predicted.

    All indexes are unmanaged and cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. All performance referenced is historical and is no guarantee of future results.

    Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

    This research material has been prepared by LPL Financial LLC.

    To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial LLC is not an affiliate of and makes no representation with respect to such entity.

    The investment products sold through LPL Financial are not insured deposits and are not FDIC/NCUA insured.  These products are not Bank/Credit Union obligations and are not endorsed, recommended or guaranteed by any Bank/Credit Union or any government agency.  The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of principal is possible.

    Leave a Reply Cancel reply

    Your email address will not be published. Required fields are marked *

    Older

    Fast-fact Friday: Instigating, Understanding and Solving Your Clients Objections

    Newer

    Commentary: Meet Clients’ Needs By Finding Your ‘Why’

    More Articles

    • S&P 500 Win Streak Comes To An End
    • 5-minute Finance: Earning Unsolicited Referrals
    • HSAs Are A Triple Tax Break That Can Help Fast Track Retirement Savings
    • The 7 Most Common Social Security Mistakes
    • Robert “RJ” Moore Steps Down As CEO Of Cetera, Due To Health Reasons

    Rewirement Tips


    Join Jamie Hopkins, Director of Retirement Research at the Carson Group, in an exclusive, new video series, Rewirement Tips.

    Sign up for our FREE e-Newsletter!

    Get breaking news, exclusive stories, and money- making insights straight into your inbox.

    select Newsletter Options

    Most Popular

    • More Than Math: Helping Clients Find Purpose In Retirement Planning
    • Rewirement Tips: Welcome To Rewirement
    • FIAs Could Overtake VAs By 2021
    • Long-Term Care Planning Requires More Than An Insurance Review
    • 5-Minute Finance: Personal Branding With Social Media

    Featured Offers

    Topics

    • Advisor News

    Top Sections

    Our Company

    • About
    • Editorial Staff
    • Advertise
    • Contact

    Sign up for our FREE e-Newsletter!

    Get breaking news, exclusive stories, and money- making insights straight into your inbox.

    select Newsletter Options
    Facebook Linkedin Twitter
    © 2019 Advisor News. All rights reserved.
    • Terms & Conditions
    • Privacy Policy
    • Sitemap

    Sign in with your INNsider Account

    Not registered? Become an INNsider.