Courtesy of John Nyaradi.
Photo:Sports Ilustrated
Kate Upton Cracks the Whip on the Bulls
We all know and love the Sports Illustrated Magazine’s annual Swimsuit Edition. This year’s swim suit model happens to be Kate Upton, a 100% blond, beautiful, American model whose presence on the cover possibly guarantees a bull market for the S&P 500 this year.
Like the famous Super Bowl Indicator, which predicts market performance based on which team from which conference wins, the Sports Illustrated Swimsuit Indicator predicts whether markets will be bullish or bearish depending on whether the cover model is American or foreign. Naturally, if the cover model is American, the S&P 500 and major markets are expected to be bullish, as opposed to a foreign model “guaranteeing” bearish markets.
This year fellow investors, we are in luck, as Kate Upton is indeed blonde, beautiful, and 100% American. Bring on the Bulls!
But just how accurate is this indicator? Last year’s cover model was Russian, and although Irina Shayk was brunette and beautiful, sorry Russians, the indicator was just too bearish. Seeing how the S&P 500 was flat the entire year of 2011, one can’t but help to believe that the indicator kind of works.
Unfortunately, however, Marissa Miller, the 100% blonde, beautiful, American swimsuit model who posed for the cover in 2008 did not produce a bull market- quite the contrary in fact. However there is hope that an American on the cover of the Sports Illustrated Swimsuit Edition promises a bull market, because according to Bespoke Investment Group, anytime an American beauty has graced her presence on the cover, the S&P 500 was positive 88% of the time since 1978 with an average return of investment just under 15%, while anytime a foreign model graced her presence on the cover of the magazine, the S&P 500 was bullish only 70% of the time with an average return of investment of just over 10%. In terms of ETFs, looking at the chart below of the SPDR S&P 500 ETF (NYSEARCA:SPY), the Sports Illustrated Swimsuit Indicator might be accurate this year as one can see a strong bullish trend since January:
chart courtesy of StockCharts.com
There aren’t too many indicators with an 80% accuracy rate (except for the Super Bowl Indicator of course), so this must be a surefire way to invest, right? Maybe, maybe not, however, at the very least, the Sports Illustrated Swimsuit Edition is a great read and a fun trip to the beach during the dreary days of February. Crack the whip on the bulls, Kate!
Sports Illustrated Swimsuit Indicator statistics courtesy of Bespoke Investment Group & Investopedia.com. Sports Illustrated Swimsuit Edition 2012 copywrite Sports Illustrated.
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