02/04/2008

Superbowl Shuffle

Hello:

For those of us "seasoned enough" to remember the Superbowl Shuffle from the mid-eighties, we recall Jim McMahon and his teammates dancing in anticipation of their 1986 Superbowl Victory. Last night was a Superbowl Shuffle of a different nature, when the Giants surprised the Patriots with their victory in the final minutes of the game.

On Wall Street, there are two reasons to celebrate. One reason is obvious, due to the victory of their home town heroes. The second reason is the Superbowl Indicator, which we stress is coincidental and not causal. The Superbowl indicator is based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in the stock market for the coming year, and that a win for a team from the old NFL (NFC division) means the stock market will be up for the year.

The Giants are from the old NFL (NFC division), and so their win yesterday might encourage traders to be more bullish this year. Just as the results of the game were determined in the last minutes of play, so may the results of the stock market be determined in the last minutes of trading.

Bullish or Bearish, does your organization's written investment plan reflect your current situation and future goals? Feel free to contact us to refresh, or write your organization's written investment plan so that you can look forward to victories in the Superbowl of life!

 

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager