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If the Cardinals Win, So May the Markets

Jason Motte #30 and Yadier Molina #4 of the St. Louis Cardinals celebrate after defeating the Texas Rangers 3-2 during Game One of the MLB World Series at Busch Stadium on October 19, 2011 in St Louis, Missouri.
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Jason Motte #30 and Yadier Molina #4 of the St. Louis Cardinals celebrate after defeating the Texas Rangers 3-2 during Game One of the MLB World Series at Busch Stadium on October 19, 2011 in St Louis, Missouri.

As this year's Fall Classic swings into high gear, could the winning team predict the market performance next year?

Investors have long used nontraditional metrics in an attempt to forecast the direction of the market, ranging from lipstick sales to the cover of Sports Illustrated Swimsuit Edition.

Here is one more indicator to add to the list: The World Series. This year’s matchup pits the St. Louis Cardinals against the Texas Rangers.

Since 1926, the Cardinals have won 10 World Series titles. In 9 of those occasions, the Dow posted a gain the following year, with an average return of 13 percent.

In fact, it is the Dow’s best return for any Major League Baseball team with four or more titles.

Baseball & The Markets

Cardinals World Series Title
Following Year
Dow Value
% Move
1926 1927 200.70 27.7%
1931 1932 60.26 -22.6%
1934 1935 144.13 38.5%
1942 1943 135.89 13.8%
1944 1945 192.91 27.0%
1946 1947 181.16 2.2%
1964 1965 969.26 10.9%
1967 1968 943.75 4.3%
1982 1983 1,258.64 20.3%
2006 2007 13,264.82 6.4%
Average 12.8%

As for the Rangers, they have yet to win a World Series in their franchise’s history. So, get ready to break out your rally caps if St. Louis wins the World Series – history may repeat itself.

Ideas for By The Numbers? Send them to giovanny.moreano@nbcuni.com