The Lindsay Lohan Indicator: Do Stocks Really Surge When She's In Jail?

Lindsay Lohan sentenced.

Photo: AP

Lindsay Lohan’s recent conviction for violating court orders has traders abuzz this morning.There’s chatter that we’ve heard from a couple of people that the market has, over the past few years, been inversely correlated to her well being.

It seems that the further Ms. Lohan plunges — think rehab, house arrests, SCRAM ankle bracelets and three jail sentences — the higher the S&P will go.

Surprisingly, Lohan hasn’t broken enough laws in her life to prove statistical significance, but it just looking at the data, it’s hard to find anything that you’d want to trade on.

Some of her jail stints have seen the market go down, and some of her periods in rehab have been better than her periods in jail, making the whole thing look pretty dicey.

Take a look:

  • January 2007 (Rehab): -2.1%
  • May 2007 (Rehab): +2.4%
  • August 2007 (Rehab): +2.7%
  • November 2007 (Jail): -1.1%
  • July 2010 (Jail):  +3.9%[July 2010 (Including Time in Rehab): +5.7%]
  • [July 2010 (Including Time in Rehab): +5.7%]
  • September 2010 (Jail):  +1.5%
  • May 2011 (House Arrest):  -1.4%

Again, if you’re going to trade on Lindsay Lohan, be super careful.

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