“Your English teacher and your gym teacher are getting married,” Taylor Swift and Travis Kelce announced Tuesday on their joint Instagram page. The news overshadowed just about everything else happening and the internet exploded as the singer’s loyal fanbase searched for information.
It might sound strange, but the news also affected the stock market, putting wind in the sails of certain shares. But this isn’t the first time her legion of fans have had an impact in the markets. Swift’s Eras Tour, brought the best month of business to hotels in whichever city she happened to be at that time.
Taylor Swift’s ring behind stock surge
Taylor Swift is known for looking after every detail of her public life that she shares with here fans and the engagement photo posted on the couple’s Instagram page was no exception. One of the things that caught people’s attention was the stunning engagement ring Swift was wearing.
As the legion of Swifties took to the internet to see what kind of ring it was, that spike in search traffic most likely “triggered certain traders’ algorithms to buy jewelry stocks,” speculates John Bromels at The Motley Fool.
Immediately after the announcement there was an unexplained 1% bump in the stock price of Signet Jewelers Limited. By Thursday morning, the company’s stock was up nearly 10% from where it was before the Swift and Kelce made there engagement public.
Another jewelry company, Brilliant Earth Group, got an even bigger boost with its shares soaring 30% on Tuesday. Luxury brands Movado Group and LVMH, also saw a bump.
Unfortunately, by Thursday afternoon the rally for Signet Jewelers and Brilliant Earth Group seemed to have sputtered out. While still up over their pre-engagement announcement values, their shares have come down from their peaks.
And before you think about investing in jewelry stocks, Bromels warns that they have been lagging behind the S&P 500 significantly over the past five years. However, he says: “Whichever jeweler can be the first to mass-produce a Taylor Swift-inspired cushion-cut engagement ring will almost certainly have a hit on their hands.”
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