Aspirin Count Theory


This is one of the interesting thoeries which I came across.I found it fascinating as it directly relates to human behaviour. It is a market theory that states stock prices and aspirin production are inversely related. The term arises from the belief that as stock prices fall people are more likely to consume medication such as Aspirin. Investopedia explains Aspirin Count 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. 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.

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