Stock Market Cheers for Giants
It’s official – cheering for the Patriots to win Super Bowl XLVI is akin to cheering for a sluggish economy and Wall Street stagnation.
As if Giant fans and other New England haters didn’t have enough reasons to cheer against the perennially successful Patriots, their obnoxious head coach and devilishly handsome quarterback.
Yes investors will be cheering on the New York Giants, because the stock market does much better after an NFC team wins the Super Bowl than when an AFC team wins.
Some have hypothesized that people feel safer and calmer when the old-school NFC teams win, instead of their relatively young brethren from the AFC (the NFL merged the AFL teams back in 1960).
Others say ‘hogwash’ and say it’s just a statistical fluke, like the fact underdogs are 7-3 ATS in the past 10 Super Bowls.
The historical returns in the Standard & Poors 500 index for the six months following the Super Bowl show a 7.77% return when the NFC wins. When an AFC team wins, the return is a sluggish -0.01%.
And one sportsbook, while not offering odds on a six-month return, has created one Super Bowl Wall Street prop bet – that the market will rise on the following Monday. [ Visit Bovada for nearly 1,000 Super Bowl prop bets ]
Perhaps this is because both teams are from huge, money-filled markets and just watching their favorite teams in the Super Bowl will give off a positive vibe to traders and the world in general. Perhaps its because everyone is hung over and not paying attention to any of the bad stuff happening in the world and they trudge mindlessly through the day buying up stock.
Whatever the case, Bovada was confident enough in this happening that they made ‘market up’ a -140 moneyline favorite on the Super Bowl prop bet. The ‘market down’ answer is even odds (or +100, double your money).