Is There Really a "World Cup Curse" in the Market?

marsbitPublicado em 2026-06-15Última atualização em 2026-06-15

Resumo

Is there really a "World Cup Curse" affecting markets? Historical data shows global equity markets often underperform during the tournament. The S&P 500 has averaged negative returns of -1.5% to -2.11% across 19 World Cups since 1950, with declines in 58% of events. China's Shanghai Composite fell in 71% of tournaments since 1994. Studies confirm reduced trading activity during matches, with volumes dropping significantly, especially when a home nation plays. A team's loss can also lead to negative sentiment and selling pressure in its domestic market the next day. However, the "curse" may be partly attributed to seasonal weakness. Many tournaments are held in June-July, a historically weaker period for stocks ("Sell in May and go away"). The 2022 Qatar World Cup, held in November-December, saw a smaller drop in trading volume compared to summer events, suggesting timing plays a role. The cryptocurrency market's performance during World Cups has been mixed and largely driven by its own major catalysts (e.g., Mt. Gox hack, FTX collapse, halving cycles) rather than the tournament. Investment opportunities have shifted over time. Traditional beneficiaries like TV manufacturers have seen fading returns as streaming platforms become the core viewing channel. Classic consumer plays like beer and sportswear face challenges from changing consumption trends. Newer digital assets, like fractionalized collectible player cards on blockchain, have seen explosive growth. While gambling i...

The 2026 FIFA World Cup is set to kick off on June 11th. For a long time, a theory known as the "World Cup Curse" has circulated in the market, suggesting that during World Cup tournaments, major global stock markets often perform weakly, with trading volume significantly shrinking.

Whether you're ready with beer and peanuts to enjoy the matches or plan to trade in the market while watching, we can examine whether the "World Cup Curse" is a real phenomenon. What lies behind the data, and what are the reasons for this observed phenomenon?

Examining the "World Cup Curse" Through Data

Looking at historical data, the performance of major global stock markets during World Cup periods has generally been poor. Taking the US S&P 500 Index as an example, during the 19 World Cup tournaments from 1950 to 2022, the S&P 500's average expected return during the events was approximately -1.5% to -2.11%.

As shown in the chart above, the S&P 500 recorded negative returns in 11 out of the past 19 World Cups (a 58% rate). Notably, in recent years, US stocks declined during the 2010 South Africa World Cup (-4.1%), the 2018 Russia World Cup (-0.8%), and the 2022 Qatar World Cup (-3.5%).

The A-share market has not been spared either. Statistics show that in the 7 World Cup periods since 1994, the Shanghai Composite Index fell 5 times, a decline probability as high as 71%. Among them, the index plunged 30.15% during the 1994 US World Cup and fell 7.17% during the 2018 Russia World Cup. It only posted gains during the 2002 World Cup (stimulated by favorable policies) and the 2006 World Cup (during a super bull market).

Now let's look at the cryptocurrency market:

- 2010 South Africa World Cup period: rose about 15%

- 2014 Brazil World Cup period: fell about 7.1%

- 2018 Russia World Cup period: fell about 16.5%

- 2022 Qatar World Cup period: rose about 4.3%

With the data presented, let's analyze the reasons.

Causes of the "World Cup Curse"

Does the World Cup really have a significant impact on market performance? It has an impact, but not a major one.

First, looking at the impactful part. A paper from the European Central Bank (ECB) analyzed minute-level trading data from 15 international stock exchanges during the 2010 World Cup. The study found that stock market trading activity indeed decreased during World Cup matches:

- Overall trading volume dropped by about 33% compared to normal levels.

- When the home country's national team was playing, trading volume plummeted by 55%, and the number of trades fell by 45%.

- Key events in matches (like goals) led to a further 5% drop in trading volume.

Match results also affect the mood of fans in various countries. Research found that when a country's national team lost a World Cup match, that country's stock market often showed significant negative abnormal returns on the next trading day (up to 49 basis points). This negative sentiment from a match loss does spill over into investment decisions, leading to market sell-offs.

But why is the impact considered not major? Wall Street has an old adage, "Sell in May and go away." The stock market itself exhibits seasonal patterns, with May through October typically being the weakest performance period of the year (especially June-August). Traditional summer World Cups (June-July) happen to fall within this seasonal lull window.

As shown in the chart above, among the average monthly returns throughout the year, June (+0.44%) and August-September are often the most lackluster or even negative months. This means traditional summer World Cups (typically held from mid-June to mid-July) coincide with the window in the year when the stock market has the least upward momentum.

The 2022 Qatar World Cup was the first World Cup historically held in the Northern Hemisphere winter (November-December). This unique timing provides a "controlled experiment" to test the above theory.

Although the S&P 500 still fell 3.5% during the Qatar World Cup (mainly driven by the Fed's aggressive rate hikes), looking at trading activity, the decline in trading volume during the winter World Cup (about -18%) was significantly smaller than during traditional summer World Cups (-33%). This suggests that when the World Cup is detached from the summer lull, its liquidity-draining effect on the market weakens. This also indicates that a significant portion of the "World Cup Curse" should be attributed to the seasonal low of June-July itself.

Compared to the stock market, the cryptocurrency market better proves that the World Cup's influence on markets isn't significant. From Bitcoin's inception to now, during the 4 World Cups, its price movements can actually be traced to more direct catalysts:

- 2010 South Africa World Cup: On May 22, 2010, a story we're all familiar with happened—programmer Laszlo Hanyecz used 10,000 bitcoins to buy two pizzas, completing Bitcoin's first real-world goods transaction, giving it initial real-world value consensus. Three days after the World Cup closing ceremony (July 17, 2010), the famous Mt.Gox exchange officially launched, marking Bitcoin's entry into the era of organized trading.

- 2014 Brazil World Cup period: Bitcoin was in a bear market following the burst of the 2013 bull market (which peaked above $1,100). In February 2014, Mt.Gox, then the world's largest Bitcoin exchange, declared bankruptcy after losing hundreds of thousands of bitcoins to a hack, dealing a devastating blow to the entire industry. During the World Cup, market sentiment remained fragile. Additionally, on June 27, the US Department of Justice auctioned nearly 30,000 bitcoins seized from the "Silk Road," further increasing selling pressure and uncertainty in the market.

- 2018 Russia World Cup period: A bear market adjustment following the end of the 2017 bull run. The ICO bubble had burst, and global regulation was tightening comprehensively. During the World Cup, the crypto market faced continuous negative news. On June 22, the major Korean exchange Bithumb was hacked, losing $30 million. In early July, the US SEC again delayed/rejected multiple Bitcoin ETF applications.

- 2022 Qatar World Cup period: In early November 2022 (the week before the World Cup opening), FTX collapsed. Meanwhile, the Fed announced a 50-basis-point rate hike on December 13, with continued tightening of macro liquidity, adding insult to injury.

It's also important to consider that Bitcoin, as an asset traded 24/7 globally, is less affected by traditional seasonal holiday patterns. Its own 4-year "halving cycle" is very pronounced. In the face of macro liquidity and its own cyclicality, the World Cup effect is essentially negligible.

Investment Opportunities During the World Cup

With technological advancement and changes in consumption habits, the landscape of World Cup beneficiary industries has changed over the past two decades (2006-2026).

In the past, we all watched the World Cup on TV. During the 2006 and 2010 World Cups, traditional TV and set-top box manufacturers often achieved significant excess returns.

But by the 2018 Russia World Cup, although traditional TV broadcasting rights revenue still accounted for a large portion, the excess returns for TV manufacturers had dropped to 0. By 2022, domestic TV sales during the World Cup decreased rather than increased, with the industry seeing both volume and price declines. Related listed companies' stock prices also underperformed the broader market.

Streaming has officially replaced traditional TV as the core channel for watching the World Cup. The 2022 Qatar World Cup set a new record for streaming viewership. If you're bullish on World Cup viewership, perhaps more attention should be paid to streaming companies with exclusive broadcasting rights that can convert viewership into revenue.

Beer and sporting goods (like Nike, Adidas) are classic World Cup consumer categories, and their sector performance has been stable across past World Cups, but they also face slowing growth challenges in recent years.

Data from investment bank Jefferies shows that global beer sales grew by 3.6% during both the 2006 and 2010 World Cups. However, data from IWSR indicates that from 2014 to 2024, global overall beer consumption actually fell by 3%, with younger generations leaning more towards low-alcohol or alcohol-free beverages.

This means stocks like Budweiser and Tsingtao aren't hopeless, but new beverage stocks, new-style bars popular with young people, etc., might also perform well.

And compared to buying jerseys and shoes, young people might prefer trading cards, which can highlight advantages on-chain. For example, on the Base chain's fractionalized card platform Grail, the token price for Cristiano Ronaldo cards has surged nearly a hundredfold since May 5, and the token price for Kylian Mbappé cards has risen nearly 300-fold since May 5.

Sports betting is also a classic World Cup beneficiary sector, but the growth of prediction markets has been very rapid as well, though there aren't very good investment vehicles for prediction markets yet.

Conclusion

For a good World Cup viewing experience, stepping away from the market to relax is actually a good choice.

Israeli economists Guy Kaplanski and Haim Levy published a paper in the *Journal of Financial and Quantitative Analysis* in 2010 (cited over 261 times), which stated:

"The average return of the US stock market during World Cup periods is -2.58%, while the average return for all trading days in the same periods is +1.21%. The most natural investment strategy is to short stocks before the World Cup kicks off, which would further reinforce the stock price decline effect."

Although there's no famous instance of directly liquidating positions due to the World Cup, the World Cup window is indeed a period of poor liquidity. Regardless of the specific reasons for market movements being directly related to the World Cup, enjoying the World Cup itself might be the best defensive posture for facing a period of weaker market liquidity.

Perguntas relacionadas

QWhat is the 'World Cup Curse' in financial markets, and what does historical data show about its effect on major stock indices?

AThe 'World Cup Curse' refers to the observed phenomenon where global major stock markets tend to underperform and experience a significant drop in trading volume during the FIFA World Cup tournament. Historical data shows that during the 19 World Cups from 1950 to 2022, the S&P 500 index had an average expected return of approximately -1.5% to -2.11%, with negative returns recorded in 11 out of 19 instances (58%).

QAccording to the article, what are the two main reasons discussed for the existence of the 'World Cup Curse'?

AThe article discusses two main reasons: 1) Direct impact: Reduced market activity as investor attention shifts to matches. Studies show trading volume drops significantly, especially during games involving the home country. Also, negative investor sentiment following a national team's loss can lead to selling pressure. 2) Seasonal factors: Traditional summer World Cups (June-July) coincide with a historically weak seasonal period for stock markets, such as the 'Sell in May and go away' pattern, which naturally depresses performance.

QHow did the 2022 Qatar Winter World Cup serve as a 'controlled variable experiment' regarding the curse?

AThe 2022 Qatar World Cup, held in November-December, served as a 'controlled variable experiment' because it was the first World Cup not held in the traditional summer period. While the S&P 500 still fell 3.5% (primarily due to aggressive Fed rate hikes), the decline in trading volume (about -18%) was significantly smaller than the average drop seen during summer World Cups (-33%). This suggests the seasonal market weakness in summer is a major contributing factor to the curse.

QWhat shift in beneficiary industries for the World Cup has occurred over the past two decades, as mentioned in the article?

AOver the past two decades (2006-2026), the beneficiary industry landscape has shifted from traditional TV and television set manufacturers to streaming media platforms. While traditional TV sponsorships were key in 2006-2010, by 2022, streaming platforms with exclusive broadcasting rights became the core channel for viewership. Traditional sectors like beer and sportswear remain stable but face growth challenges, while new trends like tokenized digital collectibles (e.g., crypto-based player cards) have emerged.

QWhat investment strategy is suggested by the research from Guy Kaplanski and Haim Levy, and what is the article's concluding advice for investors during the World Cup?

AThe research by Kaplanski and Levy suggests a natural investment strategy of shorting stocks before the World Cup begins, based on the historically negative average returns during the tournament. The article's concluding advice is that, regardless of the direct causal link to the World Cup, the period is characterized by lower liquidity. Therefore, disengaging from the market to enjoy the World Cup itself might be the best defensive stance for investors.

Leituras Relacionadas

Crypto payments for gray-market peptides up by 700% in a year – Details

The use of cryptocurrency payments, primarily Bitcoin and stablecoins, for gray-market peptides in the United States surged by 700% in a year, according to a recent report. These peptides, often sold as wellness or anti-aging aids, exist in a regulatory gray area. Facing tighter restrictions from traditional banks, vendors increasingly accept crypto, with some Chinese suppliers accepting only Bitcoin. This has attracted mainstream consumers seeking cheaper access, even those new to cryptocurrency. Data from Chainalysis shows gray-market peptide vendors received $32 million in crypto in Q1 2026, projecting an annual run rate over $100 million. TRM Labs noted a similar trend, estimating $41.4 million in crypto inflows to Chinese peptide sellers in 2025. Analysts highlight this involves many first-time crypto users, distinct from historical darknet market activity, and underscores crypto's role in facilitating cross-border value transfer. This growth occurred alongside a broader downturn in general retail crypto transaction volumes in early 2026.

ambcryptoHá 4m

Crypto payments for gray-market peptides up by 700% in a year – Details

ambcryptoHá 4m

human.tech Launches Clean SDK for Privacy-First Web3 Apps

human.tech has launched the Clean SDK, a toolkit enabling developers to build privacy-first Web3 applications with transparent accountability. Released alongside Aztec's version 5, the SDK provides components for integrating zero-knowledge identity verification, sanctions screening, and private transactions, without developers handling sensitive user data or building compliance infrastructure from scratch. It uses zero-knowledge proofs and programmable verification to allow apps to confirm user legitimacy and sanctions compliance while keeping identities confidential. The first application built on the SDK, Shield, a privacy bridge to Aztec, also launched. It allows users to transfer assets privately while proving a unique human is behind each transfer and that funds have passed sanctions checks, as verified by a May 2026 audit. The SDK offers three core verification techniques: Proof of Innocence (sanctions screening against 23 sources), Proof of Personhood (simpler verification via Human Passport), and Proof of Clean Hands (higher-assurance zero-knowledge government ID checks). This allows apps to authenticate users and transactions without exposing personal data. Designed for Aztec builders, the SDK lets developers add programmable privacy to decentralized apps, eliminating the need to create their own verification and ZK infrastructure. Shield demonstrates its practical use for private bridges, but the SDK aims to enable a wider ecosystem of private, accountable financial apps and services. The launch addresses growing demand for infrastructure that balances privacy and accountability. The SDK avoids traditional identity databases, storing encrypted data off-chain, screening at both entry and exit points, and including a gated disclosure mechanism for legal requests. human.tech's products, including the Clean SDK, focus on using zero-knowledge technology to enable verifiable personhood and privacy in digital systems.

TheNewsCryptoHá 11m

human.tech Launches Clean SDK for Privacy-First Web3 Apps

TheNewsCryptoHá 11m

Unlocking $100 Million in Liquidity? Pump.fun's New Policy Tests the 5-Minute Pump Technique

Pump.fun, a popular meme coin launchpad, has introduced a new standard mechanism called BOOST. It aims to address a significant capital efficiency issue: when a newly launched token graduates from its initial bonding curve to a liquidity pool (LP), roughly 20% of its liquidity becomes permanently locked as "dead liquidity," estimated to waste over $100 million annually. Instead of locking these funds permanently, BOOST repurposes them. Upon a token's migration, approximately 20% of the settlement funds (e.g., 17.6 SOL or ~$2516 USDC) are used to buy back the token on the open market over a 5-minute period via a Time-Weighted Average Price (TWAP) mechanism. All purchased tokens are immediately burned. This creates a brief, systematic buy pressure immediately after migration, potentially generating a short-term price surge ("pump") while permanently reducing the token's circulating supply. The goal is to enhance the immediate post-launch trading experience, potentially increasing trader retention and sustainable protocol revenue, which funds ongoing token buybacks. However, concerns exist that this artificial 5-minute boost could lower the barrier for launching low-quality tokens and lead to steeper price crashes once the buy pressure stops, if followed by large sell-offs. The feature automatically applies to tokens migrating after July 21, 2024, but not to previously migrated tokens or those launched via the Mayhem AI Agent lab.

marsbitHá 18m

Unlocking $100 Million in Liquidity? Pump.fun's New Policy Tests the 5-Minute Pump Technique

marsbitHá 18m

Selling Block Space is Dead: Public Chains Must Find a New Way

"Blockchain infrastructure as a neutral, generalized platform is no longer a viable business model. This article argues that simply selling block space has failed, evidenced by the fact that only one public blockchain, Hyperliquid, was among 14 crypto firms surpassing $200M in annual revenue recently. Hyperliquid's revenue vastly outpaces others like Arbitrum, highlighting a crisis. The future lies in public chains pivoting away from neutrality to become product studios, application distributors, payment rails, or vertical SaaS providers, directly serving paying customers. The piece also covers key industry events: a major exploit on Ostium, attributed to vulnerabilities in its off-chain price oracle, underscores the critical security needs for protocols bridging off-chain markets. Additionally, it discusses the necessity of abstracting complex financial instruments like options. Experts argue that to achieve mass adoption, options should be packaged as user-friendly products—such as yield vaults, binary options, or structured products—rather than marketed with their technical complexity. Finally, the radar section notes developments including Yearn's fixed-rate lending product Flex, community backlash over Base's strategy changes, the launch of a DXY perpetuals DEX called Plether, and Starknet's focus on institutional-grade privacy and quantum resistance."

marsbitHá 39m

Selling Block Space is Dead: Public Chains Must Find a New Way

marsbitHá 39m

Podcast Notes | Conversation with GSR Asset Management Head: To Determine if This Crypto Rally is Real, Just Watch the Lending Rates on Aave

Podcast Summary: Dialogue with GSR's Head of Asset Management: To Determine if This Crypto Rally is Real, Just Check Lending Rates on Aave Andy Baehr, Managing Director of Asset Management at GSR, discusses the current crypto market, characterizing it as stuck in a state of "ambivalence" with short-lived, unsustainable rallies. He outlines a simple framework: the market moves between "ambivalence" and "conviction" (sustained upward momentum). Currently, every rally resembles a single-stage rocket booster that quickly fizzles out. Baehr identifies three key signals to watch: 1) DeFi lending rates, 2) the potential passage of the CLARITY Act, and 3) the market forming a consensus on the "Fed hawkish peak." He emphasizes that the most immediate indicator for the sustainability of the recent CPI-triggered rally is the USDC borrowing rate on Aave, currently around 3.75%—close to U.S. Treasury yields. The absence of a credit spread indicates low leverage demand and a lack of market energy. He explains that a healthy, sustained rally requires layered buying pressure. Last year's rally progressed from an ETH short squeeze to crypto-native trader influx and finally to ETF inflows. Currently, this structure is missing. Other potential structural buyers like Digital Asset Treasury (DAT) companies are absent, and ETF flows have proven transient. Baehr notes that while small-cap crypto tokens outperformed large caps in Q2—a potential sign of capitation in major assets—capital is also flowing to more exciting opportunities like AI stocks and tech IPOs, leaving crypto sidelined. Regarding DeFi, he highlights that platforms like Aave provide a clear, real-time signal of leverage demand through their supply/demand-driven interest rates. A significant, sustained rate increase would signal genuine market conviction. He also observes the quiet emergence of fixed-income-like products and vaults in DeFi. On regulation, the probability of the CLARITY Act passing before the August 7th deadline has dropped linearly from 75% to below 40% on Polymarket. Baehr suggests its passage would be treated as a bullish surprise, a potent driver for price movement. However, political hurdles, including ethical clause debates and disclosures about the First Family's crypto profits, remain significant obstacles. Ultimately, the market awaits clarity on the Fed's terminal rate under Chair Warsh. Until the "Fed Solstice"—the point where the market collectively understands the peak of hawkish policy—sustained conviction will be difficult to achieve.

marsbitHá 49m

Podcast Notes | Conversation with GSR Asset Management Head: To Determine if This Crypto Rally is Real, Just Watch the Lending Rates on Aave

marsbitHá 49m

Trading

Spot
活动图片

Categorias popularesright-arrow

Etiquetas Popularesright-arrow