World series stock market indicator

The key to success in the stock market is simple: The hard part is knowing when the market will be low and when it will be high. To address this challenge, armchair analysts have come up with a host of unique metrics that have nothing to do with alpha beta , the Sharpe ratio or any of the other more traditional analytical measures.

According these unusual metrics, short-term stock market performance can be predicted by everything from the volume of butter production in Bangladesh to the length of women's hemlines. Do any of these indicators hold even a grain of truth? We'll explore some of the more fanciful indicators here. Butter Production In Bangladesh What does Bangladesh, India, have to do with the U.

Plenty, according to some pundits. The same statistics are believed to hold true on the downside. For related reading, see The ABCs Of Stock Indexes. Like some of the other indicators, this one has a high enough degree of accuracy to satisfy its believers.

Unfortunately, like most of the others, it also has no basis in economic fact. Super Bowl Winners Regardless of your hometown team, proponents of the Super Bowl indicator argue that you should always root for a National Football League NFL team to win the Super Bowl.

Should an American Football League AFL team win the match, the markets are in for tough times.

Does the World Series outcome affect stock market returns? | Helping Advisors Blog

The twist here is that you need to root for an old-school NFL team, not an AFL team that became part of the NFL during the s merger. Would you bet your life savings on those odds?

Presidential Approval Ratings When the majority of a country dislikes the man in the White House, the stock market is supposed to soar. Based on this logic, voters seeking to line their pockets should vote for the candidate they hate the most.

Hate for your leader is love for your portfolio? There's simply no logic to this one. Sports Illustrated Swimsuit Issue Cover Millions of men anxiously await the coveted Sports Illustrated swimsuit issue. But perhaps some of them just want to know the nationality of the cover model.

According to this indicator, when an American model graces the cover, the stock market is poised for a double-digit rise. Learn how common mistakes can prevent even the smartest investors from beating the market in Brains Don't Always Bring The Bucks.

World's Wackiest Stock Indicators

The lonely boy who spent his time dreaming up this one was looking to generate hype, which he managed to do.

While the markets have shown some gains when beautiful Americans capture the cover, top-notch money managers like Warren Buffett didn't make their reputations and fortunes by ogling magazine covers.

Learn how to get in on Warren Buffett's profits in Build A Baby Berkshire. Triple Crown Winners According to the Triple Crown indicator, when a horse takes the Triple Crown, the Dow takes a tumble. If you believe this indicator, betting against the horses is arguably the best bet for your investments. Read about why investing is sometimes wrongly compared to gambling in The 5 Biggest Stock Market Myths. The number of horses that have won the Triple Crown is statistically insignificant.

Eleven winners over the course of years hardly makes for a benchmark for a sound investment strategy. What do you do with your money during the years the Triple Crown isn't won? Maybe betting on the ponies is a better idea. Women's Hemlines Some market watchers take their cues from watching women's legs.

According to the skirt length theory , when skirts get shorter, it's time to buy; when skirts get longer, it's time to sell. The logic behind this indicator dictates that positive markets lead to a happy nation and an atmosphere of fun.

Fun times send hemlines rising, making micro minis great for the markets, while conservative floor-length dresses are bad news.

When times are good, fashions do indeed tend to show skin. The bad news is that fashions don't change until times are good, making this a lagging indicator.

Ed Yardeni's Magical Stock Market Indicator (What Happens Next?) | Zero Hedge

If you are buying and selling based on skirt length, you might be better off selling when skirts are high and buying when they are low. For related reading, see Understanding The Consumer Confidence Index. The Problem With Numbers The hemlines indicator is the most legitimate, but it's not perfect.

At best, it's a lagging indicator, making it worthless to investors, although perhaps interesting to economists. Other lagging indicators, such as consumer spending, do serve as legitimate indicators of economic health. Unfortunately, success, like recession , is only fully visible after the fact. As for the others, many of the results can be attributed to data mining in its worst form, which basically describes the practice of searching for numbers that provide the result you are seeking.

Statistical data, such as the number of times a hunky leading man appears in movies without wearing a shirt or the number of unsuccessful stock market prognosticators staring out their windows at skirt lengths instead of making money for their clients can be correlated to all sorts of events, from stock market declines to lunar eclipses.

If you dig hard enough, you can uncover a statistical correlation that says whatever you want it to say. Predicting the Future Clearly, everybody wants to pick a winner and avoid a loser, and nearly everybody has a theory about how to do it.

From short skirts to fast horses and pretty models, the amateur indexes run the gamut, but at the end of the day, if predicting the direction of the markets were that easy, we'd all be rich! Instead of spending your time watching silly indicators or dreaming up tracking schemes of your own, you'd be far better off with dollar-cost averaging , buying when you can afford to buy and holding until you need the money.

To learn more about dollar-cost averaging, read DCA: It Gets You In At The Bottom. Dictionary Term Of The Day. A measure of what it costs an investment company to operate a mutual fund. Latest Videos PeerStreet Offers New Way to Bet on Housing New to Buying Bitcoin? This Mistake Could Cost You Guides Stock Basics Economics Basics Options Basics Exam Prep Series 7 Exam CFA Level 1 Series 65 Exam.

Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. World's Wackiest Stock Indicators By Lisa Smith Share. The National Football League is the most successful sports league in the world. How does the NFL make money, and what is its strategy to stay on top?

Investing on Wall Street and gambling on The Strip are not as different as they may seem. Even in the hardest of times, these leagues are certain to turn a profit. Stocks sometimes thwart the efficient market theory by showing some very unusual patterns. Just because a belief is common, doesn't mean that it's true. Here we separate fact from fiction. Learn to overcome eight hurdles that can keep you from realizing the best returns. Learn the technique that Buffett, Lynch and other pros used to make their fortunes.

Leading indicators move ahead of the economic cycle, coincident indicators move with the economy, and lagging indicators An expense ratio is determined through an annual A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies.

A period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all A legal agreement created by the courts between two parties who did not have a previous obligation to each other. A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation.

Index and Market Indicator Catalog [ChartSchool]

A statistical technique used to measure and quantify the level of financial risk within a firm or investment portfolio over No thanks, I prefer not making money. Content Library Articles Terms Videos Guides Slideshows FAQs Calculators Chart Advisor Stock Analysis Stock Simulator FXtrader Exam Prep Quizzer Net Worth Calculator.

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