The Super Bowl Theory
This past Sunday, our founder René Nourse was on CNBC's The Rundown, discussing an interesting theory about how the Superbowl can dictate the rest of our financial year for the US markets.
There's a lot of different theories that kick in at the beginning of the year, especially the Super Bowl indicator. Generally as January goes they say the rest of the year goes, but that's not what happened last year. The SNP was down but then we were up 15% by the end of the year. This year we have had a less than spectacular month, but two theories come into play. The Super Bowl theory says that if an NFC (National Football League) original team the markets are generally up, but if it's an AFC team, they generally go down. So this year, the Seattle Seahawks were the NFC team, and even though they loss, not to worry, because there are other theories as well that go back to the 1880s about the outcome of the 5th year of the decade. This year is looking to be a good one and we're going to make it.
In other news, the GDP print on Friday was less than stellar and the employment cost index rose slightly, with wages and benefits rising slightly at 6/10ths of a percent, which is slower than the last two quarters. Now this won't be enough for the feds to feel that it's time to raise rates anytime soon, and they've taking a patient stance with this in terms of moving on rates mid year, but that seems to be floating away. The interesting part is that consumer spending however was up almost 4 and a half percent, which has been the highest level in 9-10 years, so this is a good sign.
To hear more about the stronger dollar and other components benefiting and at the same time hurting different aspects of the US market, be sure to watch the whole video and try to catch René on CNBC's The Closing Bell on the 24th at 12PM PST!