Global Matters Weekly – 21 November 2022

The World Cup effect

by Gary Moglione — Portfolio Manager

— If the S&P 500 declines over the next month you can be confident that the subconscious actions of billions of heartbroken football fans will be partly to blame

As a keen student of behavioural investing, I love reading articles on how human behaviour is influenced by emotion and how this translates to stock market movements. If only there was an event that stirred up extreme emotions that the majority of the world will participate in. It just so happens that the FIFA World Cup is here, and according to audience data around 3.6 billion people watch the tournament on television.

Market Snapshot

    • Global equities rose 6.7% last week
    • Last week saw US midterm elections, key developments for Ukrainian forces, and a below-expectations Consumer Price Inflation (CPI) report that gave the market signs of a potential Federal Reserve (Fed) pivot
    • Brent crude fell by 2.6% over the week to $96.0 a barrel
    • Gold rose by 5.3% to $1771.2 per ounce