World Cup Preview: Stocks Rooting For Europe?

by Ryan Detrick, LPL Research

The 2018 FIFA World Cup™ kicks off tomorrow, as 32 countries vie for one of the greatest trophys in the world of sports. The tournament has taken place every four years since 1930 (excluding World War II), making this the 21st World Cup.

“Although in no way, shape, or form do we support investing based on potential World Cup winners, wouldn’t you know it that the S&P 500 Index has done quite well when a European country came out on top? In fact, only European and South American countries have ever won a World Cup, with the S&P 500 up 8.6% for the year on average when Europe has won, versus only 1.1% for South America,” explained LPL Research Senior Market Strategist Ryan Detrick.

Here are some (nonfinacial) takeaways to help you win at World Cup trivia:

  • The World Cup was cancelled in 1942 and 1946 due to World War II.
  • A European country has won the World Cup 11 times, with South American teams making up the other nine.
  • Europe has won the past three World Cups, making this the longest such win streak for any one contenient.
  • Brazil has won the most World Cups, at five. Italy and Germany are tied for second at four.
  • Technicaly, Germany has only one World Cup (2014); West Germany won the other three.
  • The United States missed the World Cup in 2018 for the first time since 1986.
  • Brazil, France, and Germany are the favorites this year.
  • Today it was announced that the U.S., Mexico, and Canada would co-host the 2026 World Cup.
  • No country has repeated as champs since Brazil in 1958 and 1962. Can Germany do it this year?

Enjoy the World Cup everyone!

IMPORTANT DISCLOSURES
The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. The economic forecasts set forth in this material may not develop as predicted.
All indexes are unmanaged and cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. All performance referenced is historical and is no guarantee of future results.
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
This research material has been prepared by LPL Financial LLC.
To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial LLC is not an affiliate of and makes no representation with respect to such entity.
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