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Feb 28Doug Smith

Buzzword of the Week: Aspirin Count Theory

Feb 28Doug Smith

Investopedia tells us that 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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