A Rams win could mean a 14% stock surge: 7 fun market stats ahead of Super Bowl LVI from S&P Global

OSTN Staff

Cooper Kupp scores a touchdown against the Detroit Lions.
LA Rams wide receiver Cooper Kupp scored a touchdown against the Detroit Lions in October 2021.

  • S&P Capital IQ’s database is full of fun facts about stocks in relation to Super Bowl winners and losers. 
  • For example, after an NFC team wins, the market returns 13.8% on average, compared with 10.7% after an AFC victory. 
  • The LA Rams will face the Cincinnati Bengals this Sunday in Super Bowl LVI. 

The S&P 500 is in a slump early in 2022 but its fortunes could turn around if the LA Rams win the upcoming Super Bowl — although a victory for the Cincinnati Bengals could result in an even higher annual return for the key equity benchmark. 

Before the Rams play the Bengals in this Sunday’s NFL Championship game, S&P Global Market Intelligence took a “light-hearted look” at stock market returns in relation to winners and losers of the league’s yearly marquee matchup. This year’s Super Bowl LVI finalists will faceoff at SoFi stadium in Inglewood, California. 

Whether you’re a Rams fan or cheering for the Bengals, investors who are long equities should root for a high-scoring game — and not just for the potential entertainment factor.

The median combined final score of each Super Bowl has been at least 46 points over the past 55 years. When the game’s final combined score is at least that many points, the stock market returns 15.9% on average over the year that follows, going back 29 years, said S&P Global. But a combined score lower than 46 points brings in a smaller average return of 8.2%. 

S&P Global also said returning champions are “a win” for the S&P 500, pointing out that the Rams have been in four Super Bowls and last won it in 1999. “When a former champion returns and wins the Super Bowl, the average market return is 14.3%,” the financial analytics firm said in a note. 

In an advantage for the AFC champion Bengals, the AFC is considered the “home team” this year — even though the Rams play their regular-season games in SoFi Stadium.

“When the designated home team wins the average market return in the subsequent years is 16.9% versus 8.9% after a road team win.” 

Cincinnati Bengals defense celebrates an interception against the Steelers.
Cincinnati Bengals defense.

Other fun facts from the S&P Capital IQ database: 

  • Even though the Bengals are 0-2 in their previous Super Bowls, stock market returns averaged 26.6% after their losses in Super Bowls XVI and XXIII. The Bengals lost both of those games to the San Francisco 49ers.
  • The equities market appears to like the Rams’ location out West. After the Los Angeles Rams appeared in two Super Bowls, the market was up an average of 32%. But after two big games while the team was based in St. Louis, the average market return was -15.6%. 
  • The market turns in a better performance on average after an NFC team wins, returning 13.8% compared with 10.7% after an AFC victory. 
  • Both the best annual return and the worst return took place after an NFC win. The S&P 500 in 1995 returned 37.6% when the 49ers defeated the San Diego Chargers. The index in 2008 lost 37% when the New York Giants beat the New England Patriots. 

No matter which team comes out on top, the NFL will give Super Bowl LVI attendees a free NFT to commemorate the game.

Read the original article on Business Insider

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