Investors are rational bunch individuals with well thought out theories and statistics to gain an edge on the market, right?

You Should Be Thanking Kate Upton

Well, this year, those investors following the Sports Illustrated swimsuit indicator were the real winners. The indicator shows that US equity markets perform better in years that US-born models appear on the cover of the magazine’s annual issue. This year Kate Upton, a true American, was on the cover – and the market performed extraordinarily well, rising over 29%.

In fact, between 1978 and 2008, the average return of the S&P 500 was 13.9% when the cover model was an American, and 7.2% when the cover model was a non-American.

Yes, please thank Kate Upton (not Bernanke) for your portfolio’s return this year. Happy New Year!