Back in 2003, as the US economy was coming out of a recession, the markets were slowly trying to get up off the mat. The tech wreck of 1999-2000 had sent the markets into a tail spin and all the major indexes suffered substantial losses; including America's sweetheart index the Dow, represented here by the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA). So, while most people were looking at improving economic data and low interest rates as the reason for the turnaround, I was looking at the emergence of LeBron James.
Many of you are probably scratching your head and thinking, what is this guy talking about. Well hear me out, as some of the facts are quite interesting. On June 26, 2003, "King James" was drafted by the Cleveland Cavaliers. That day the Dow had a closing print of 9079.04. Over the next few years as James started to hit his stride in the NBA, the markets moved up higher right alongside the basketball phenom. In the 2006-07, LeBron James was playing the best basketball of his career to that point, and lead his Cavs to the final. They eventually lost out to the San Antonio Spurs in four straight games. Then a few months later on October 11, 2007, the markets topped out with the Dow closing at 14015.12. Over the next few years James would continue playing for his hometown Cleveland Cavaliers, but would not reach the finals again, and the markets would not reach those lofty levels during that same period.
In the summer 2010 King James was a free agent and speculation swirled around what team he would choose and on July 8, the much anticipated "DECISION" was announced. The basketball star was taking his 'talents to south beach' to play for the Miami Heat. That day the Dow had a closing price of 10138.99. So from the time LeBron was drafted, to the time he switched teams, the markets had gone up just over 11%, which is a bit uninspiring considering it was over 7 years.
So how did the bulls of SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) feel after the superstar switched teams? Since the day of the historic move to Miami, you could say the markets really began to "HEAT" up. The Dow has blown past the previous high water mark of 14198.10 and gained nearly 70%, and seems to be hitting new record highs on a daily basis. After seeing this interesting correlation between LeBron James and the stock markets, one has to say that it won't be just the basketball world who is awaiting the free agent's decision. While it might be far fetched to say that LeBron has any effect on the markets, it is none the less interesting to note the timing in certain events.
Would you place your market wagers on the direction of Lebrons career? Comment and let me know your thoughts. Either way, as smart traders and investors we know there is always a great trade waiting for us; all we need to do is keep the odds in our favor.
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The following article is from one of our external contributors.
It does not represent the opinion of Benzinga and has not been edited.