Super Bowl Stock Market

Super Bowl

This weekend will be the much anticipated and hyped Super Bowl 45 between two historic teams, the Pittsburgh Steelers and the Green Bay Packers. Now if you are looking for a full NFL breakdown of the game, head over to ESPN.com, but I think there is an interesting lesson that coincides with successful investing. Looking back at numerous preseason NFL polls, the Steelers and Packers were both in the top 10 with a high probability to make it to the Super Bowl. This is in sharp contrast to the Detroit Lions, Carolina Panthers or say, Cleveland Browns who have historically underachieved.  Those are just basic assumptions based on recent history.So if I asked “Who do you think is going to be a better team next season – the Pittsburgh Steelers or the Carolina Panthers?” What would you say? On one hand, the Steelers were 14-2 this season and have won the Super Bowl in two of the last 5 years, while the Panthers finished a woeful 2-14 this year, only making the playoffs in 4 out of the last 15 years. Of course the Steelers.  Why?  Because they have put together a strong franchise.  They have proven game plans, elite players, and savvy coaches. The funny thing is the way investors typically invest.  They look to the “Carolina Panthers” stocks and sectors and bet on those in hopes that they have a miraculous turnaround and are amazed when the turnaround doesn’t happen overnight.  Focus on  “strong teams”  to invest, those that possess the same qualities of the Steelers and Packers, while avoiding teams that are in need of long term rebuilding and overhauls.Enjoy the game!-by Tim Dyer