Lifting World Cup can boost stocks in home market
LONDON (AP) — Winning the soccer World Cup can bring instant rewards to that country’s stock market investors. But they better be quick as the post-victory rally doesn’t last long.
That’s the conclusion of investment bank Goldman Sachs, which published a wide-ranging report late Tuesday on the World Cup and its economic impact.
Goldman Sachs analysts found “a clear pattern of outperformance by the wining team in the weeks after the World Cup final.” Their conclusion is based on statistics since 1974.
However, they say the positive impact doesn’t last long and the winning nation sees its stock market underperform by around 4 percent over the year following the final.
And the losing finalist country suffers an immediate “bout of the blues.”
The 32-country World Cup kicks off in Brazil on June 12.