Trying to figure out a way to judge our nation’s economy? A lot of people are. Ranging from the experts of Wall Street to the at home day trader, people try to prognosticate how and when our economy will grow.
There are the obvious ways to track the economy like home prices and interest rates. And there are some more bizarre ways, like following the sales of romance novels or the mosquito bite indicator. But allow me to present a tracking scale that beats them all:
The TFI was introduces by Delta Dental in 1998 and has shown a pretty accurate picture of how our economy is going based on the amount the Tooth Fairy gives for one tooth.
So far, 2021 has been looking up with an average of $4.70 per tooth. That’s an increase of $0.20 and matching right along with the growth of the S&P 500.
“Over time, the Tooth Fairy IndexTM (TFI) shows that the value of a lost tooth is closely related to the U.S. economy. Much like Punxsutawney Phil’s Groundhog Day weather prognostication, the Original Tooth Fairy Poll has generally been a good barometer of the overall direction of the economy. In fact, for 16 of the past 19 years, the trend in average giving has tracked with the movement of the S&P 500.”
So next time you have a question about our economy, instead of asking Wall Street, let’s see what the Tooth Fairy leaves under your pillow.