According to FinancialSpreads, there are a variety of sectors that look promising if you are looking to trade stocks and shares during the World Cup.
Naturally the UK pub chains and retailers who sell England football merchandise are worth investigating. However, the problem with day trading stocks around the World Cup is that much of the positive effect of the tournament will already be priced into the shares. Also if England perform poorly, or if they are just plain unlucky, then some of the more obvious buys become sells.
Having said that, with companies FinancialSpreads and PipTrade you can speculate on stock markets and shares that are listed in some of the more consistent countries.
For example, looking at German shares an investor could speculate on the Adidas share price to increase. And there won’t be much getting away from Adidas this summer. They sponsor both Germany and France, they are official FIFA partners, they sponsor players like Lionel Messi and David Villa. They even supply the match balls”
It is also possible to speculate on other European shares such as Carlsberg, however, the Danes are not the 2010 sponsors. In contrast, the US stock market does supply a few sponsors in the form of McDonalds and Coca Cola.
Another option is financial spread trading on the South African Stock Market to perform well. During the more recent World Cups the host nation’s leading stock market index has performed well around the tournament.
Looking closer to home though, the UK’s pub chains should experience reasonably brisk trade but again much of the upside could already be priced into the shares and there might be better value elsewhere.
Looking at the more traditional sports retailers like JJB and Sports Direct they also have positives and negatives. They should see increased England shirt sales but the supermarkets are increasingly active in that market. Tesco are even an official England sponsor for 2010. The extra sponsorship, shirts sales and mechanise should give the shares boost. Also the other positive for Tesco is that if the England team enjoys a good run that should further boost alcohol sales.
Adidas should not be ruled out and neither should trading the South African Stock Market however Tesco does have a few more strings to its bow. The supermarket also has fewer downsides and for that reason it is probably the stock to watch out for.
Before you trade, please note that financial spread trading carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.
