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Friday
Aug102012

The Olympics Indicator Comes Through

Prior to the opening ceremony of the London Olympics on July 27th, we highlighted the Olympics Indicator, which shows that the stock market has historically done quite well during the Summer Games.  While it didn't work so well during the 2008 Beijing Olympics, the indicator worked like a charm this time around.  

As shown below, from its close on July 27th through today (the closing ceremony is on Sunday), the Dow Jones Industrial Average gained 1.01%.  This is just above the historical median gain of 0.91% during the Olympics for the Dow.  

And the Olympics Indicator worked even better for the host country, Great Britain.  Prior to this year's Games, the median gain for the stock markets of host countries going back to 1984 was +1.72%.  During this year's Games, the FTSE 100 gained more than twice that at +3.91%.

Who said investing in the market isn't easy?!

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