When the Tampa Bay Buccaneers and Kansas City Chiefs face off in Super Bowl LV this weekend, one quarterback will look forward to an interesting development off the field.
According to Ryan Detrick, chief market strategist at LPL Financial, history points to better results for the market when one team outperforms another. He explained the coincidental correlation with The Washington City Times’s “Trading Nation.”
“It’s called the Super Bowl indicator,” Detrick said Wednesday. “It’s a nice one. We’re not investing in this, let’s be very clear, but historically when the NFC team wins, the stock market does a lot better all year round, and when an AFC team wins, the stock market does. a little worse. “
This year’s National Football Conference team is the Tampa Bay Buccaneers, led by quarterback Tom Brady; the American Football Conference team is represented by Kansas City Chiefs with Patrick Mahomes as the quarterback.
Since 1967, the S&P 500 is up an average of 10.2% for the full year when the NFC wins and 7.1% when the AFC wins.
But while Tom Brady has switched to an NFC squad from AFC squad New England Patriots this year, past performance suggests he’s not a winner for the market.
“When Tom Brady played in the game nine times – this is his record 10th Super Bowl – the S&P is actually just ahead of the year,” said Detrick. “He might be the GOAT [greatest of all time], but he’s not the GOAT for the stock market. “
The S&P 500 is up 3% for the year so far, hitting record highs on Friday.