Markets Happy About a Yankees World Series
Congratulations New York on its 40th World Series! Sure Wall St. is in the same city as the Bronx Bombers home field, but the real reason the bulls on the street want the Yankees to win the World Series is the lift the men in pinstripes seem to give the markets.
Since the first World Series in 1903, the Dow Jones Industrial Average has averaged an annual gain of 7.17%. When the Yankees have been in the World Series (39 times before this year, 26 wins), the average goes up to 7.76%. When the Yankees have won, the average climbs to 7.84% while it drops to 7.60% when they have lost. The Dow is up 13.6% YTD this far and if it holds on to its gains, the Yankee WS average will now go up again.
The best Yankees year for the markets: 1928 when the Yankees swept the St. Louis Cardinals in four games and the Dow gained 49.5% for the year. The worst year: 1937 when the Yankees beat their cross-town rivals, the NY Giants, 4 games to 1 but the market finished down 32.8% for the year.