Wondering how the World Cup affects the stock market? Unless something major happens with world events in the next few weeks the anticipation will be low volume in the stock market. Although the summer months are known for less activity a relatively small event is set to begin this week.
I don’t know of you have heard about it in the United States. It is a game where players kick a ball to each other with the eventual goal of getting it to a large net, on the opposite end of the playing field.
The game I refer to is soccer and the event is The World Cup.
It is only the entire world that nearly comes to a standstill, except of course the United States.
The game is played somewhat like basketball. Instead of using your hands you use your feet and the net is much larger. The reason why I am mentioning the World Cup at this time is that the regular low volume in the markets during the summer months will be magnified.
Bloomberg has reported that there has previously been a significant drop in volume with stock exchanges, during the time The World Cup is played. During the 2010 World Cup, transaction volume in the Santiago Chile exchange for example, dropped by over 99% when the national team was playing. Both Argentina and Brazil reported a whopping decline in volume of 80% and 75% respectively.
Even in the United States volumes in the stock market dropped by 43% at the time!
In Europe exchanges dropped an average of an estimated 38%. This means that over the course of a month beginning June 12, (World Cup commences) we may see substantial lower volumes in the market. It is a good thing our traders can make money consistently even in lower volume markets.
As we move closer to the finals of The World Cup we might even see lower levels in market activity. Normal summer action may not return until after July 13th, with the ending of the games.
We are looking forward to having that personal experience here such as with our Colombian traders. At present, we are preparing our next round of traders to go live in the market. The rapid pace of growth for our business has necessitated the search for additional office space. We now have 35 traders under contract with 4 traders already trading live in the market.
Colombia is ranked 8th in the world behind other Latin American countries such as Brazil (3rd), Argentina (5th), and Uruguay (7th ).
There is always an opportunity to invest money in the markets and to make good returns. One just has to find these opportunities. I am looking forward to sharing some of the investment vehicles that we have been using in countries like Colombia, and other nations around the world. We didn’t travel to the World Cup this year because we already spent a significant amount of time day trading and traveling in Brazil. Maybe we will reconsider for the 2018 World Cup in Russia.
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Stay profitable my friends.