A Summer of Sport has begun in Europe, fans readying their celebration of a host of unmissable games and events catering for all tastes.
At home, Tennis lovers get their annual dose of pageantry from Wimbledon and its legendary grass courts. F1 enthusiasts can follow drivers round the iconic Silverstone at the British Grand Prix. Golf fans have both the Open and Ryder Cup, cyclists the Tour de France and cricketers England v India.
Then there is the Granddaddy of them all: the sports event of not just the year, but this half of the decade: the FIFA World Cup. Unlike most other competitions, it occurs once every four years, like the Olympics, one of the few events where fans can support national team on a true world stage.
Bringing People Together
The World Cup is not just a sports event, it is also an important social event. Even those oblivious to the rules of the game are aware of the tournament. Some follow it for national pride or love of sport; others out of curiosity, as the media blankets the airwaves with non-stop coverage.
Some people love it, others not so much. But even those who don’t like the competition itself may be swept up by the phenomenon. As a social event, the World Cup brings families and friends together and provides a strong impetus for spending money on food, leisure and entertainment.
This general increase in personal consumption is expected to produce a noticeable economic impact on specific sectors and companies. While the UK economy in general is experiencing a 2018 growth slowdown, the World Cup could be set to improve business prospects for many commercial businesses. And since many of these companies are publicly traded on the London Stock Exchange, this means potential for shares to offer tradable opportunities.
Tapping the Momentum
It is undeniable that the World Cup is a momentous, emotional event for many spectators. In our previous report on “Momentum Investing” we discussed the power of such emotional events to generate short-term tradable opportunities for savvy investors.
A smart market trader would approach the World Cup dispassionately. Not as a show but a commercial and social pivot-point, an event that can trigger waves of positive or negative share price momentum in specific public companies.
Here at Accendo Markets will believe that the best traders stay ahead of the competition, tapping into unorthodox trading opportunities. We are confident in our mission to identify such strategies and help our clients navigate the euphoria of the World Cup not as passive spectators, rather as smart and educated investors.
Our goal in this report is to identify companies whose shares could be set to benefit from the World Cup’s consumer spending boost and to help investors avoid the pitfalls of misidentifying trends.
Here’s a hint: a certain pub operator saw its shares rise by more than 11% during the 2010 World Cup in South Africa and by more than 10% during the 2006 World Cup in Germany. Could it repeat such performance this summer?
Continue reading this report to find out more about shares that could rise during the World Cup and sign up to have our research sent directly to your inbox.