The Three Most Insane Indicators
The stock market is simple if you think about it. All you have to do is buy the financial instrument at a low price and sell the financial instrument at a high price. Buy low and sell high is the golden rule. What’s complicated is predicting when these lows and highs are possible. That’s why traders and investors rely on different indicators and factors to predict the future of a certain financial instrument. Indicators and factors include the Gross Domestic Product (GDP), oil prices, the Consumer Price Index (CPI), unemployment data and other technical indicators like Stochastics, Money Flow Index, and Relative Strength Index. All these technical and economical indicators are good and well however, there is the part of the economic analysis where indicators have taken on the most crazy forms. The following are the most insane indicators in the world that apparently worked at some point despite them having no connection with any metrics with the alpha beta. Let’s see if its true.
Bangladesh Butter Production
You might be wondering why the production of butter in Bangladesh, India would affect the performance of the US stock market. According to some experts, it is a relatively accurate prediction. As per history, it is said that the butter production multiplied by two will be the S&P 500 Index’s percentage increase or decrease. For example, a 3% increase in butter production means a 6% increase for the S&P. Although, it is as true as the rising sun for its believers, there is no real basis for this indicator.
Swimsuit Issue Cover of Sports Illustrated
Sports Illustrated is one of the most insane indicator in this list with the market performance being predicted with the nationality of Sports Illustrated Cover models. According to this indicator, every time the magazine hires an American model to pose for the cover, the stock market is in for a double digit increase while non-American models spells disaster for the stock market. Although it’s nice to think that looking at models can predict your investment, there is no real basis for this indicator as well.
Triple Crown Victors
In this insane indicator, horseracing is the key. According to legend, if a horse wins the Triple Crown, the Dow Jones Industrial Average will likely plummet. This means if you want to gain in the market, bet your investments against the winning horse.
People really want to find any way to maximize their investments even if it takes believing in the most ridiculous indicators. This is all good and fine, if it makes you feel better but always remember to get facts from all possible resources other than these kinds of indicators.