When the Tampa Bay Buccaneers and Kansas City Chiefs take on in Super Bowl LV this weekend, one strategist will be expecting a fascinating advancement off the field.
According to Ryan Detrick, primary market strategist at LPL Financial, history indicate much better results for the marketplace need to one group win over the other. He described the coincidental connection to CNBC’s “Trading Nation.”
“It’s called the Super Bowl indicator,” Detrick stated on Wednesday. “It’s a fun one. We do not invest in this, let’s be very clear, but, historically speaking when the NFC team wins, the stock market does a lot better the whole year, and when an AFC team wins, the stock market does a little bit worse.”
This year, the National Football Conference group is the Tampa Bay Buccaneers, led by quarterback Tom Brady; the American Football Conference group is represented by Kansas City Chiefs with Patrick Mahomes as quarterback.
Since 1967, the S&P 500 has actually increased an average 10.2% for the complete year when the NFC wins and 7.1% when the AFC wins.
But, while Tom Brady has actually changed to an NFC group this year from AFC group New England Patriots, previous efficiency recommends he’s not a winner for the marketplace.
“When Tom Brady’s been in the game, 9 times —this is his record 10th Super Bowl — the S&P’s actually flat for the year,” stated Detrick. “He may be the GOAT [greatest of all time], however he’s not the GOAT for the stock exchange.”
The S&P 500 is up 3% for the year up until now and strike record highs on Friday.
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