The Joseph Group

The Olympics Light a Torch for the Stock Market

August 5, 2016

The chart below shows the average stock market performance during the time periods surrounding the Olympic Games.  On average, both the Dow Jones Industrial Average and the S&P 500 tend to drift lower in the two weeks before and the two weeks after the Olympics.  But during the Olympic Games, history shows stocks tend to move higher – and significantly higher than any average historical two-week period.

Source: Strategas Research Partners

Looking at two weeks certainly should not be the foundation for a long-term investment strategy.  However, during these Olympic Games, history says the stock market is less likely to take a dive like Upper Arlington native Abby Johnston, and instead is more likely to vault to new highs like Gabby Douglas.