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.
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