Will the World Cup Cause the Global Economy to Fall Apart?

Europe is hanging by hinges. Emerging markets lie in the balance. If all these fragile economies grind to a halt during the World Cup, will the celebration harm markets?

Our friends at Bespoke Investment Group are out with a cool study analyzing the historical performance of the SP 500 (NYSE: SPY) and MSCI World Index during and after World Cups. BIG notes, “The S&P 500 has averaged a decline of 1.65% during all 18 prior World Cups, and a decline of 0.37% in the three months following.  The MSCI World Index, which we only have back to the 1970 World Cup, has averaged a decline of 1.25% during and 4.34% over the following three months.”

If you liked this, check out our Economic Analysis World Cup Special …

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