Finally a market indicator we can depend on. One Harvard Business School alum, now running his own consulting firm, has been saying for a while that when fewer Harvard M.B.A.s enter the financial industry the market is bound to improve. And it’s not just because they’re insufferable.

[Ray Soifer] calls it a “rather esoteric but nonetheless generally accurate” long-term indicator of the direction of stocks. According to the index, when Harvard graduates pile into Wall Street jobs, the market is probably overheated and could be heading for a tumble.

Any year that more than 30% of the graduating Harvard Business School class takes “market-sensitive” jobs, we should all think about selling. Anything under 10%, we should buy. This year 28% of Harvard’s freshly minted M.B.A.s took jobs in the financial world, so hold?

A Contrary Indicator on M.B.A.’s and Stocks [NYT Dealbook]