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Aug 20Doug Smith

Buzzword of the Week: Aspirin Count Theory

Aug 20Doug Smith

5-aspirin cfo northern virginiaThis week’s buzzword made my head hurt. According to Investopedia, Aspirin County Theory is a market theory that states stock prices and aspirin production are inversely related. The Aspirin count theory is a lagging indicator and actually hasn’t been formally tested, so it is more a humorous hypothesis than a theory.

As stock prices fall, more and more people need pain relievers to get through the day. For example the Aspirin count theory would predict that as aspirin sales increase, the stock market’s value decreases and vice versa.

 

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