The past two World Cup-hosting countries saw gains in their equity markets in the year after the event, says Russell Investments.
South Africa, host of the 2010 World Cup saw its equity market return 12.4% between the close of competition on July 11, 2010 and July 11.
The equity market in Germany, host of the 2006 World Cup, returned 28.3% between the close of competition on July 9, 2006 and July 9, 2007.
With the equity market in Brazil, this year’s host country, down nearly 20% year-over-year it would benefit from such a boost.
The Russell Emerging Markets Index country constituent Brazil is down (-16.6%) for the year ended May 27, 2014, while the Russell Emerging Markets Index is down (-0.8%) for the same time period.