If the Cardinals Win, So May the Markets

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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.

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