Should you buy STI during World Cup season?

The World Cup is finally here. It will take place in Qatar from 20 November to 18 December 2022. While you are busy chasing after each match, how should you handle your trading and investment? Well, based on historical data dated back to 1994, it is better that you just stay at the sideline and focus all your attention on the matches. Below is a table of returns from Straits Times Index if you started buying at the start of the world cup season and sold just before the finals (column "Start to before WC final") or just after the finals (column "Start to after WC final"). The last column is if you buy on the Friday just before the finals weekend and sell on the following Monday. All prices are provided by Yahoo Finance. No dividend was distributed during the season. On average, you will end up losing money. Even if I take away the best return and worst loss in the table, the averages are still negative. 

This is not specific to Singapore stock market, it is also happening to the US stock market. It could be because people lose bets in the world cup matches  that they start to sell their stocks to cover losses. Or they are upset because their favourite team loses the match. Or simply the lack of sleep during this period is clouding sound judgement... for whatever reasons. This is most evident during the finals weekend. Out of 7 times, only once (in 2010) it has been profitable. Average return is -0.66%. So you should know what to do during this world cup season. Oh, but this time could be different? Since 1994, the world cup seasons had been held at the middle of the year. This year, it is held at the end of the year. There is the Santa Rally which could offset the weakness. It would be interesting to see... 

By the way, for those in Singapore who want to watch free World Cup match screening, head over to these Macdonald outlets. If you think this post is useful or interesting, please give us a like! 

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