Filed under: Marketing and advertising
With many of the world’s top companies lining up to shell out massive bucks for Sunday’s huge game, investors might want to take a look ting-to-do-with-the-stooo.
According (subscription required) to the Wall Street Journal, “Shares of Super Bowl advertisers tend to outperform the Standard & Poor’s 500-stock index in the week after the game. A trading strategy based on buying those companies would have beaten the benchmark in 10 of the past 12 years, by an average margin of 1.3 percentage points, the research shows.”
Of course once you factor in the trading costs and tax burden of buying a bunch of stocks and selling them a weak later, this isn’t such a hot strategy.
But hey — This one’s slightly less dumb than the more famous Super Bowl indicator, which I gave a well-deserved trashing to yesterday.
The correlation is interesting. If the effect is indeed causal — it’s difficult to state — it may be that investors are so tuned into the most anticipated commercials of they year that it impacts their stock trades on subconscious level: see Doritos ad, purchase PepsiCo, Inc. (NYSE: PEP) stock.
I’d take a pass on this predictor.
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