OPINION: Stock trading during March Madness may not be a good idea. Researchers have found that during widely followed sporting events, enough investors act irrationally that the market’s performance is below average.
You might want to avoid trading stocks during this year’s NCAA “March Madness” men’s basketball tournament, which began earlier this week and lasts until Apr. 4. That’s because researchers have found that during widely followed sporting events, enough investors act irrationally that the market’s performance is below average.
You might think that these negative effects of losses would be cancelled by a correspondingly positive stock market impact in countries whose teams were victorious. But the researchers did not find such evidence, probably because a win merely means that a country’s team continues in the competition while a loss means the country is out altogether. As a result, losing teams’ fans are likely to be more dejected than winning teams’ fans will be elated.
To be sure, neither set of researchers who authored these studies is recommending that you should go completely to cash during big sports competitions. The magnitude of the stock market’s below-average performance during those competitions is not great enough to overcome transaction costs — especially if you take taxes into account.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
WATCH: Indiana cheerleaders get March Madness shining momentA pair of cheerleaders stole the show on opening night of the NCAA Tournament, coming up with an innovative way to dislodge the ball after it became stuck. STORY:
Read more »
March Madness: Less than .001% of perfect brackets remain after 1 day of NCAA tournamentHow is your bracket holding up? Fans apparently have a far greater chance at winning the Powerball jackpot than correctly predicting the result of all 63 games in the NCAA tournament.
Read more »
From Villanova champ to Delaware star: Dylan Painter ready to dance in March MadnessDelaware forward Dylan Painter started his college career at Villanova. But now he is looking to help the No. 15 Blue Hens get their first-ever win in the NCAA Tournament. To do so, he has to take down his former team.
Read more »
March Madness 2022: Tournament stalwart Loyola-Chicago a safe bet again against Ohio StateThe Loyola-Chicago Ramblers will look to pull the upset against the Ohio State Buckeyes, and there’s plenty of reason to believe that they can.
Read more »
No. 2 Kentucky Offed in First Round of March Madness by Tiny Jesuit St. Peter’s College“It was one of those games I was hoping I’d get them by it and get on to the next game. I didn’t do a very good job of it,' said Wildcats Coach John Calipari
Read more »