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Wall Street History
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04/18/2008
Tiger, the NBA, and Roger
And now for something completely ridiculous or is it?
I saw a blurb in the Wall Street Journal on the effect Tiger Woods’ performances at the Masters golf tournament have had in the bond pits. Such as “over the last 11 years, the bond market has performed best in Aprils when Mr. Woods captures the green jacket, according to analysts at BNP Paribas.”
Well, what about the equity market, specifically the S&P 500, I mused? If you just look at April in the years Tiger has won the Masters, the performance is mixed.
But what of his performance in all four majors compared to the stock market? Here’s a comparison of the S&P’s full-year total return and Tiger’s 13 major titles.
1997 +37.4 Masters 1998 +28.6 1999 +21.0 PGA 2000 .-9.1 U.S. Open, British Open, PGA 2001 -11.9 Masters 2002 -22.1 Masters, U.S. Open 2003 +28.7 2004 +10.9 2005 .+4.9 Masters, British Open 2006 +15.8 British Open, PGA 2007 .+5.5 PGA 2008 ?????
What conclusions can you draw? Heck, nothing.
But wait as Tiger looks to recover from his latest knee operation in time for the U.S. Open next June at Torrey Pines, you can see that the two times he has won this event have proved to be dismal ones for the market. We’re off to a poor start for equities thus far in 2008, so those looking for Tiger to tear up a course he has performed well on in the past better not then be looking for much in their portfolios should he take his 3rd Open title. Plus, you can see in years he doesn’t win a major, the market registers double-digit returns.
What of other sports, though, you might be asking? I already cover football in depth come Super Bowl time, and after looking at World Series and Stanley Cup past champions the last 10+ years, I can tell you there are no clear patterns of market behavior in these cases.
But the NBA, the National Basketball Association, is a different matter and as the playoffs here commence this week, those of you who welcome the apparent return of the #1 seed Los Angeles Lakers to prominence can not also be bullish on stocks, because the last time the Lakers won the title, three in a row, actually, was 2000-2002, and you can see above this was an awful time for equities.
Conversely, the four times the San Antonio Spurs have won, 1999, 2003, 2005 and 2007, were all up years for Wall Street.
But wait there’s more. I also looked at tennis, to see if anything could be gleaned from the results of either Wimbledon or the U.S. Open the past decade or so in terms of those players still in the hunt today.
Check this out. Roger Federer has won Wimbledon five years in a row, 2003-2007, all up years for stocks. This is significant because Federer has been ill much of this year thus far and not as yet on his game, at least the kind of performance we’ve become accustomed to. In light of the early ’08 stock market, this doesn’t bode well, does it? But if he manages to win, and stocks are down year-to-date at that point, look for a stupendous rally the rest of the year.
Finally, back to Los Angeles, and looking at Wimbledon and the U.S. Open, not only did the Lakers win, 2000-2002, but L.A. natives Serena and Venus Williams took all six possible Wimbledon and U.S. Open crowns during that time. In other words, if you are ‘long’ the market, the last thing you want is anything L.A.-based in terms of the NBA or tennis’ two top events.
Ridiculous? I’m not so sure now.
Wall Street History returns with more traditional statistical analysis next week.
Brian Trumbore
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