OUR THOUGHTS ON:

Did the Steelers' Super Bowl Win in 2009 Impact Market Returns?

Wealth Management

By Beth Lynch

First, let’s start by taking a look back to January 30, 2009, as hard as that may be. The S&P 500 Index was down 106 points for the month and the Dow was down almost 800 points -- traditionally January is considered a strong indicator of how the market will do for the year. However, one thing was different; the Pittsburgh Steelers were headed to the Super Bowl! It was at that time that Nancy Skeans (Partner/ Managing Director of Schneider Downs Wealth Management) was interviewed by Channel 4 News, and our chart about the Steelers and S&P Returns (see below) was published in the USA Today showing how the market (as measured by the S&P 500 Index) performed in the year that the Pittsburgh Steelers won the Super Bowl! Our conclusion was, don’t be surprised if 2009 brings double digit returns.

Well, they did it! The Steelers won the Super Bowl in 2009 and the market rallied. As a matter of fact, the Steelers are the only team with five or more appearances in which the S&P 500 index was up double digits every year in which they won the Super Bowl-- 2009 was no exception, the S&P 500 was up 26.5% by year-end. Prior to this last Super Bowl win, the average return for the S&P 500 when the Steelers won the Super Bowl was 25.5%. Adding another win to that chart brings the average return to 25.7%.

So, now that we know the Steelers are not going to be in the Super Bowl this year, what’s in store for the market? Only time will tell, but historically when any other team takes home the title as Super Bowl Champions, the market has returned an average of 9%. Of course, we cannot forecast what the equity markets will bring. We feel optimistic that the economic recovery will continue into 2010; however, there are still some hurdles to overcome and more bumps in the road to face this year. From an investment perspective, we advise having a well-diversified portfolio based upon short- and long-term goals and objectives so that it is able (as are you) to weather the storms when they arise.

For entertainment purposes only

S&P Returns - Steeler Victory Superbowl

 

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