LOS ANGELES, CA - DECEMBER 06: Kobe Bryant #24 of the Los Angeles Lakers is congratulated by teammate Ron Artest #37 after scoring a basket against the Phoenix Suns during the first quarter at Staples Center on December 6, 2009 in Los Angeles, California. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and/or using this Photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Kevork Djansezian/Getty Images)
And you thought the Lakers were just good for some entertainment.
They could have been earning you money — and not by betting on some illegal offshore account. No, by betting the legal way — through the stock market.
When the Los Angeles Lakers won the NBA championship, the market would almost always fall that year. When the Lakers lost, the market would usually rise. The Laker Indicator only steered investors wrong in three years during the entire span, and not once from 1995-2007.
An investor who put down $1,000 into the Nasdaq at the start of 1987 and stayed fully invested through 2007 would have ended up with $7,604. But an investor who bought the Nasdaq in years the Lakers lost and stayed in cash when the Lakers won would have finished with $21,189.
Just think, if you had followed this advice you could be as rich as the 10th man on the Lakers bench. Don’t get greedy, you are not going to make Kobe money unless you enter a life of crime or figure out how to make game winning shots with a broken hand.
With the way the Lakers are playing this year, you may want to get out of the market now. They won the title last year,are 20-4 on the season and even Celtics fans are saying if the Lakers are healthy come June they will be almost impossible to beat. Get out now, while you still have money to get out.
Sure, the math geeks out there will tell you not to confuse correlation with causation. Whatever. Jim Cramer is wrong all the time. He won’t admit it, but he is wrong all the time. Why shouldn’t you go with a system that has been right 17 of the last 20 years?
Who are you going to trust: The guys that gambled that the housing bubble would never burst and had to be bailed out, or Kobe Bryant and Phil Jackson? How do you think Jack Nicholson decides when to invest? Exactly.