Study finds World Cup losses can cause 0.5% stock market decline in losing countries

If you believe the stock market is a rational place, consider the World Cup effect.

Over the years, a handful of researchers have explored whether the emotional highs and lows of the tournament show up in stock prices.

Sure enough, there seems to be statistical evidence that soccer outcomes can influence risk appetite.

It comes down to investor mood. And nothing spoils the national mood quicker than getting keenly routed on the pitch.

A loss in the elimination stage of the World Cup translates into an 'abnormal' decline of about 0.5 per cent in the losing country's stock