Thinking about Investing in the Angelina Jolie Stock Index?

by Investing School on July 29, 2011

Granted, there aren’t many people who can claim to have a stock index named after them, but this is one of the exceptions. The Angelina Jolie Stock Index isn’t a stock exchange; rather, it is collection of stocks associated with the well known actress and her companies. Celebrity may have a price, but in this case, it has a buy in.

This index was compiled by Fred Fuld of Stockblogger.com and it contains a number of movie studios and companies which are connected to the famous actress’s career. The thought behind this particular collection is that since Ms. Jolie is one of the most influential celebrities worldwide, and she makes films that are generally viewed as blockbusters, any companies with which she is associated will inevitably do well on the stock market.

There are a number of such celebrity indexes which are currently popular – for example, those following Johnny Depp or Sandra Bullock, and their fortunes wax and wane, just like every other stock does. While initially Jolie’s index did quite well, even outperforming the Dow Jones, current rates of growth are much lower.

If you want to invest in celebrity indexes your best choice is to watch trends in popularity. For example, Johnny Depp, Cameron Diaz and Tom Cruise all have big movie releases due in 2011, potentially marking companies associated with these actors a good investment at the moment. To make money on these investments, though, you would have to put your money down before the movies came out, and that means that if the films are flops, you might lose your shirt.

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