How the Olympics Could Affect the Stock Market

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How the Olympics Could Affect the Stock Market
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Olympics results can affect your investing—really. It’s another way that our moods get in the way of financial decisions.

Studies show that losses or sports events have an investing impact—another way that our moods can mess with financial success

China is enforcing a strict set of rules at the Winter Olympics to stop the spread of Covid-19. From a"closed-loop” system to a ban on shouting, WSJ explains how some of these restrictions will work, and why an outbreak could still derail competitions. Photo: Fabrizio Bensch/ReutersYou might want to avoid the stock market until the Winter Olympics ends on Feb. 20.

This is not as off-the-wall a recommendation as you might think. At least in academic circles it has been well known for 15 years that international sports competitions often lead to below-average global stock-market returns.

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