Stop reading this article and go visit this recent Business Insider piece “Nike Stock Could Do Something Unexpected Before The Olympics.” There is a chart at the bottom I want you to take a look at.
The writer, Seth Archer, succeeds in making a counterintuitive point: Large sporting events sponsored by Nike do not historically have the immediate effect of raising Nike’s stock price in the short term. The Nike stock price slumped in relation to: The 2008 Summer Olympics, 2010 Men’s World Cup, 2012 Summer Olympics, and 2014 Winter Olympics. Archer’s theory is that analysts and investors are gobsmacked by the revelation of just how much money Nike spends marketing these events and pull back from the stock.
But while Archer’s point is a nice piece of parlor information to store in the back of your mind, it is not something that should translate into investment advice … Read the rest of this article!