This Sunday we will witness the NFL Championship game as Aaron Rodgers and the Green Bay Packers take on Ben Roethlisberger and the Pittsburgh Steelers in Super Bowl XLV.
With the 4th quarter of 2010 now in the rear view mirror and four quarters of what looks to be some pretty super football on the horizon, I thought it appropriate to talk quarters.
- Since 1990 the best performing quarter for the S&P 500 each year is the 4th quarter, which generated a positive average return of 4.9%.
- Likewise, ratings for the Super Bowl increase each quarter with the highest number of viewers hitting in the 4th.
- Earnings for S&P 500 companies were projected to be up 25% in the 4th quarter of 2010 vs. the 4th quarter of 2009.
- The Dallas Cowboys, in Super Bowl XXVII, set a record for 4th quarter points with 21 to close out a crushing 52-17 win over Buffalo.
The 4th quarter can be critical.
The last Super Bowl appearance by the Steelers in 2009 required a 4th quarter miracle. The Steelers were up 20-3 late in the 3rd quarter when the Cardinals staged a comeback and jumped ahead 23-20. With 35 seconds left Roethlisberger threw a game-winning touchdown pass to give the Steelers the victory. After the game head coach Mike Tomlin stated it simply: “Steeler football is sixty minutes”.
Investing is the same way; the best results come when you are in it for the long-term. And with sound strategy you won’t have to rely on a last-minute Hail Mary play to pay for retirement. Focus on the good old-fashioned basics of offense and defense by creating a diversified asset allocation considerate of your time horizon and risk tolerance. Once you’ve got that squared away, you can enjoy the game and let Mr. Roethlisberger worry about 4th quarter miracles.