Top 10 Most Bizarre Bond and Stock Correlations
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Most people know about the stock market, but don’t really understand what it is or how it works. In fact, many people who work in the stock market do not really understand it very well themselves. As such, many stock traders claim to be able to accurately predict the stock market, but in many cases are just guessing. As a result, stock traders have developed a lot of wild theories to try and predict the stock market’s fluctuation. Weirdly, some of these crazy theories have actually worked. Check out below for the top 10 most bizarre bond and stock correlations that stock brokers use when choosing winning stocks.
#10: American baseball home runs and strikeouts can track the bond and stock market
One of the weirdest predictors of the stock market is how many home runs are made in American baseball. In fact, as the stock market value increases, so does the number of home runs in the league. This has been shown to be true since the beginning of Major League Baseball. Furthermore, if you also take into account the number of strikeouts, these two data points together track the stock market even better. According to the Socionomic Institute, baseball and the stock market closely reflect the current mood of American society.[1]CNBC – Home runs and strikeouts can track the stock market
#9: The Stock markets goes down 567 points and back up exactly 567 points in the same day
As a reflection of society’s mood, the stock market can be very fickle. In fact, it can make extremely wild swings even over the course of one day. One of the biggest, strangest, and most famous stock market coincidences happened on Tuesday, February 6, 2018. On this day, the stock market started that day by going down 567 points. However, at the end of the day, it had regained gained exactly 567 points up.[2]Silver Doctors – Just A Coincidence? Stock Markets Opens 567 Points Down And Finishes 567 Points Up
#8: The Shanghai stock market’s closing numbers reflect the date of the Tiananmen Square incident
China is a communist country. The government has strong control over the lives of its citizens and heavily uses censorship. One of most infamous examples of Chinese censorship was during the events of Tiananmen Square on June 4, 1989. On this day, the Chinese government violently put down protesters to their regime. However, they have attempted to censor any mention of this event in the country. They have gone so far as to censor the date (6/4) itself. However, on the same day of the year in in 2012, the Shanghai stock market fell exactly 64.89 points reflecting the date 6/4/89.[3]Los Angeles Times – Shanghai stock market closes with a spooky echo of Tiananmen Square As a result, the Chinese government also added the words “Shanghai Stock Market” to their banned list of internet search terms.
#7: The strange correlation between Amazon and Groupon bond and stock shares
Amazon is the biggest online store in the world. Groupon is one of the most popular discount sharing website in the world. These two companies don’t really share anything in common. However, statisticians have found a correlation between the company’s stocks. When one company’s stocks does well the other tends to do poorly.[4]Zesty – Stock market reveals strange pattern between Amazon and Groupon shares
There are several ideas as to why this is the case. One of the most popular states that Amazon and Groupon reflect the buying habits of consumers. When people just want to buy something without thinking about price, they tend to go to Amazon. However, when people are looking for the best prices on things, they tend to go to Groupon.
#6: Butter Production in Bangladesh accurately predicts the bond and stock market
One of the strangest stock market coincidences is the relationship between the butter production in Bangladesh and the American stock market performance. People who follow this method say that you need to take the change in the amount of butter production in Bangladesh and multiply that number by two. The result will give you the exact percentage change in the S&P 500 for that year.[5]Forbes – The Bangladesh Butter Indicator Says Buy! While no investor would actually use this method, statisticians have found that this performance metric is the most accurate at predicting the stock market. In fact, the measurements of butter production in Bangladesh have been able to predict stock market growths up to 99% of the time accurately. It is more accurate than using GDP growth, politics, or any other economic metric.
#5: The Super Bowl winner predicts bond and stock market success or failure
Stock marketing experts have found that another crazy stock market positive correlation that can predict market failure or success is who wins the Super Bowl winner. Believers in this stock market/football correlation, state that you should always support the National Football League (NFL) team to win over the American Football League (AFL) team.[6]USA Today – Tom Brady Super Bowl win could hurt stock market However, it is important to only root for old school teams that were part of the original NFL. In fact, according to a Wall Street Journal article, there is an 80% correlation between the NFL team winning the Super Bowl and the stock market going up.
#4: Sports Illustrated Swimsuit Issue cover predicts good or bad years for bond and stock investments
People looking for good investment advice and predictors, don’t need to look any farther then the pages of Sports Illustrated’s Swimsuit Issue. Stock market prognosticators say that if the Sports Illustrated Swimsuit Issue Cover girl is an American, the stock market is poised for a double digit rise.[7]CNBC – Swimsuit Indicator: Why Stocks May Have a Good Year
#3: The length of women’s hemlines is a bond and stock indicator
One of the most bizarre theories that attempts to find a way to predicts the bond and stock market says that the length of women’s skirt hemline is a good indicator of the stock market’s health.[8]Money Morning – What Skirt Lengths Tell You About The Stock Market If women wear shorter skirts, the market will do great. However, if women wear longer skirts, the market will do bad.
The rational behind this is that if people are happy because things are going well financially, they will likely wear more revealing clothes. However, this is not a good predictor of the stock market. Rather, it is a lagging indicator. This means that instead of predicting what the stock market does, it responds to the stock market.
#2: The American president’s approval ratings can help predict bond and stock performance
It isn’t too surprising that the American President’s approval rating has a positive correlation with the stock market’s performance. As the Head of State, the president’s actions can directly effect and reflect the economy. In fact, statisticians have found that a presidential rating between 35% and 50% means good news for the stock market.[9]Presidential popularity rises and falls with the stock market
#1: Triple Crown Winner accurately predicts bond and stock performance
Horse betting and the stock market have one thing in common. They are both just a bet. There is very little ryme or reason as to why one horse or stock wins or looses. However, statistical fans of the two have found a positive correlation between the Triple Crown winner and the stock market. Whenever a horse wins the Triple Crown, the stock market crashes.[10]Fortune – Is American Pharoah’s Triple Crown win bad for stocks? Fortunately for financial investors, only 13 horses have won the Triple Crown, with the first winner in 1919.
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