Yankees in First Shows Winning Plan Without Bonds: Chart of Day 2009-08-12
By Mason Levinson and Jeff Kearns Aug. 12
(Bloomberg) -- The New York Yankees' front-running status might lead to
some joyous months in the Bronx and profitable ones on Wall Street. 'The CHART
OF THE DAY compares the historical performance of the S&P 500 Index, the
benchmark index for American equities, from Aug. 12 to year's end when the
Yankees are in first place, as they are today, to when they trail.
During the 33 years since 1928 that the Major League Baseball team led its
division on Aug. 12, the S&P 500 had average gains of 3.3 percent for the
remainder of the year. That's five times higher than the 0.64 percent average
gains the index had during the 48 seasons the Yankees weren't in first place.
"As a Yankees fan I can tell you why that happens: because the Yankees are
always in the lead and the market goes up two-thirds of the time," said Richard
Bernstein, chief investment officer of New York-based Richard Bernstein Capital
Management LLC and former chief investment strategist of Merrill Lynch &
Co. "You can put it up there with such other notable buy signals as who
wins the Super Bowl."
"One shouldn't underestimate the strength of spurious correlations."The Yankees, following a four-game sweep of division rival Boston last weekend, led
the Red Sox by 5 1/2 games through Aug. 10 in the American League East.
Of the team's 26 World Series titles, 22 came after holding a first-place
lead on Aug. 12.
With assistance from Rodney Yap in Los Angeles. Editors:
Michael Sillup, Jay Beberman
So apparently the Yankees winning is good for the economy which is good for America. What do you think of that Red Sox Nation? (LOL)
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