Does the Super Bowl Influence the Stock Market in Any Way?

Some people believe that the Super Bowl can influence how the stock market performs on the day immediately following the game.  

Super Bowl stock market theories

Although there is no cause and effect that any kind of statistics can prove, there are enough who believe in what they call the Super Bowl Halo Effect. According to this belief,  the Dow Jones Industrial Average supposedly has a better year whenever the National Football Conference wins the Super Bowl.

If anything, this effect might be more of a superstition than anything else, but that hasn’t stopped even professional investors from trying to document whether the Halo Effect is true.

What Affects Stocks After the Super Bowl

However, two economic phenomena surrounding the Super Bowl have a rather modest effect on the stock market following the game — and that appears to bolster believers in the aforementioned Halo Effect.

The first of these concerns companies that buy advertisements to air during the Super Bowl. And the other has to do with firms that are based in the city where the game is held.

A study by the University of Connecticut found that average returns are higher on stocks in companies based in the city in which a Super Bowl is held, regardless of which team wins the game. This year’s game is in Minneapolis, where the stadium is owned by US Bank.

Which Companies Sponsor the Game

Speaking of being the name sponsor of a bootball stadium, sponsorship of the Super Bowl apparently correlates with a we bit of upside in the stocks of the respective companies, according to that same university study.

Buying stocks in these companies the morning after the game might be too late, however; researching ahead of time which firms would be likeliest to run ads during the game and buying them beforehand might be more effective. It might be safe to assume that the companies that bought ads last year might do so again this year.

A word of caution before you go picking up stocks in likely advertisers: If any of the ads don’t go over well with viewers, there’s a chance that might play out in the stock market the day after the big game.

About Stadium Finance

It’s also worth noting that there is another aspect of finance related to football that doesn’t come up in any of the conversations about the Supre Bowl Halo Effect — perhaps because it’s not stocks but rather bonds, and municipals to be exact.

Yes, muni bonds help finance new stadium construction. But no way do munis’ financial performance have anything to do with the outcome of the Super Bowl, nor any other sport for that matter.

So whether it’s advertisers during the Super Bowl or companies based in the same city as the host stadium, neither seems to be the best justification for buying stocks.

Use Other Criteria for Investing

Hopefully you base your investment decisions on more substantial trends than whether the Super Bowl influences the stock market.

Readers, which team do you plan to root for during this year’s Super Bowl? And where do you plan on watching the game?

Join our newsletter

If you like Critical Financial, subscribe and get our latest content via email.

Powered by ConvertKit

Share this post:

Related Posts

Leave a Comment

*

May the 4th Be with You: Star Wars Swag on Amazon

May the 4th Be With You: Star Wars Day Swag

It began as the punniest holiday ever but quickly grew into an earnest (if somewhat random) celebration of the long-running (and still... more →
People count the money to buy a house in future success.

Avoiding Mortgage Scams: Don’t Fall for Unreasonable Promises

If it sounds too good to be true, it probably is. That’s sound advice for almost all aspects of life, including the search for... more →
Eat for free for a whole month via the meal kit companies discounts for new customers.

How To Get a Month of Free Food: 9 Meal Kit Companies Offering Discounts to New Customers

Play your cards right and you might be able to line up a month’s worth of free meals if you were to try out all nine of the meal... more →
Generate extra cashflow -- here are 97 ways.

96 Awesome Ways to Generate Extra Cashflow

Who doesn’t want more money nowadays? We’ve got you covered on that front. Here comes a long list of different ideas on... more →
Valentine's Day gifts that won't destroy your budget

Valentine’s Day Crafts Are Romantic Rescue from Crazy Inflation

Fall for the hype this week and you’re out an average of $143.56 for Valentine’s Day. Crafts and other do-it-yourself tactics... more →

Ultimate Guide to Bitcoin — FREE Ebook!

Have we got something for you: a free ebook about bitcoin! more →
Get a flu vaccine.

Why You Need To Get a Flu Vaccine Right Now

Flu vaccines aren’t just for the elderly  anymore. Here are 25 reasons you should go get vaccinated. more →
Financially successful

Acquire the Trait All Financially Successful People Have

Financially successful people tend to all have a lot of self-discipline. Improving your discipline in one area of your life often spills... more →

What’s the Best Free Recipe App?

The Apple Store and Google Play together offer more digital cookbooks than you probably have room for on your mobile device. So which... more →
New tax law might slow down housing market.

What Will the New Tax Law Do to the Housing Market?

The new tax law will have a profound impact on the housing market, although in ways that go beyond the deductibility of mortgage interest... more →

4 in 5 Households Will Get a Tax Cut in 2018

Four out of five U.S. households will get a tax cut as a result of the legislation that President Donald Trump signed into law today. more →
Will bitcoin reach $100,000?

When Will Bitcoin Reach $100,000?

Bitcoin has accelerated its pace of appreciation in recent months, and if the current levels between $15,000 and $19,000 make you itch... more →
The Dow Jones topped 24,000 -- now what?

The Dow Jones Crossed the 24,000 Threshold. Now What?

Stocks appear to be increasing in volatility, yet the markets closed on Monday, December 4 with the Dow Jones Industrial Average is... more →
Peer mortgage

Should You Get a Peer-to-Peer Mortgage?

If you can’t get approved for a home loan from a bank, you might want to look into applying for a peer-to-peer mortgage. more →
Investment gifting is awesome.

4 Things To Know Before You Donate an Investment

While donations of any kind are appreciated, gifting investments benefits both the giver and the receiver. Here are four key things... more →
Are you wondering: What's the Relationship Between the Stock Market and Federal Debt?

What’s the Relationship Between the Stock Market and Federal Debt?

Wouldn’t it be wonderful if gains in the stock market could actually reduce U.S. government indebtedness? If that were true,... more →

Do you need to tip a house painter?

There always seems to be a gray area when it comes to tipping someone. Some people are more prone to tip, while others feel the base... more →