Tiger Woods and the Stock Market

In January, after Tiger Woods won the Farmers Insurance Open, Sam Weinman wrote that historically, a winning Tiger has been correlated with a winning stock market.

We’ve heard how golf’s financial well-being rises and falls with Tiger Woods. But what if it was the entire American economy that hinged on the state of Woods’ game?

You laugh. Yet a closer look at the fluctuations in the Nasdaq Composite Index over the last 17 years show a remarkably similar pattern to Woods’ own ups and downs as a professional.

Consider: When Woods turned pro in August 1996, the Nasdaq bounced around in the 1,100 range. A little more than a year later, with Tigermania in full swing following Woods’ landmark win in the 1997 Masters, the Nasdaq had eclipsed 1,700. The upward progression continued as Woods overhauled his swing under Butch Harmon and then embarked on the most dominant golf stretch of golf in the game’s history. In May 2000, whenWoods was busy winning five of six majors, the Nasdaq famously surpassed 5,000 points.

A coincidence? Probably. But as Gary Kaminsky, the Capital Markets Editor for CNBC, said, “If you want to draw some conclusions, stock market participants who are avid golf fans become more aggressive and optimistic in thinking about their investments when Tiger wins a tournament.”

It’s no secret that a lot of guys on Wall Street are golf nuts. Obviously, I’m more than skeptical of any true relationship between a rising market and a rising Tiger. Of course, the relationship may work the other way, and Woods is being helped by a strong market.

In any event, I’ll point out that Tiger won again this past weekend.

Posted by on March 11th, 2013 at 10:12 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.