IT seems there could be a pot of gold at the end of the Olympic rainbow. According to analysts at business advisory firm Deloitte, there is an unexpected post-Games trend that could bode well for the UK economy.
Deloitte’s number crunchers reckon that a host’s stock market after the Olympic Games consistently outperforms the average of other major indices – and not by an insignificant amount.
Following Los Angeles 1984 Games the US’s S&P 500 rose five per cent faster than the average index, while the Beijing games saw a staggering 26 per cent boost to the SE180.
But it was the Seoul 1988 Games and the KOSPI Index that gets the gold for post-games growth by outperforming its global peers by 34 per cent. The anomaly in the survey, which covers the last 28 years of the sporting event, was the 2000 Olympics in Sydney, which preceded an S&P ASX 200 that lagged 12 per cent behind the average.
James Ferguson a partner at Deloitte said: “Whilst the current economic woes blighting the Eurozone cannot be overlooked, let’s hope the London markets get a boost to match what happened after previous Olympic games”.