Earlier this week, the Olympics officially ended after two exciting weeks of competition in Tokyo! In this episode, Josh and Austin talk all things Olympics: from the beginning stages, to the financial aspect of the games, and competing during COVID-19. Listen in now!
Main Talking Points
[2:05] – How to Become a Host of the Olympics
[8:06] – How Much do the Olympics Cost?
[10:08] – Income from the Olympics
[12:51] – Dad Joke of the Week
[13:38] – Tokyo 2020
[15:44] – How are the Olympics Funded?
[16:51] – Watching the Olympics
[18:54] – Olympics and COVID-19
[20:03] – The Market During Olympic Times
Links & Resources
Invest With Us – The Invested Dads
Free Guide: 8 Timeless Principles of Investing
Social Media
Full Transcript
Intro:
Welcome to The Invested Dads Podcast, simplifying financial topics so that you can take action and make your financial situation better. Helping you to understand the current world of financial planning and investments here are your hosts, Josh Robb and Austin Wilson.
Austin Wilson:
All right. Hey, hey, hey, welcome back to The Invested Dads Podcast, the podcast where we take you on a journey to better your financial future. Today, Josh, we’re going to be talking about the Olympics and the financial impact it has on the host country. Right now, depending on when this comes out, they’re either just wrapped up or wrapping up at this point.
Josh Robb:
That’s right. USA, go USA!
Austin Wilson:
Okay, well you need to calm down a little bit because the bald eagle on your shoulder is scaring me a little bit. Let’s just …
Josh Robb:
America.
Austin Wilson:
Pause that.
Josh Robb:
America.
Austin Wilson:
Let’s pause that. He’s looking hungry and I have this zucchini chocolate muffin. Chocolate zucchini!
Josh Robb:
Chocolate zucchini.
Austin Wilson:
Heavy chocolate.
Josh Robb:
More chocolate than zucchini. The ratio is-
Austin Wilson:
Was this for Sawyer?
Josh Robb:
That was my oldest daughter, a chocoholic.
Austin Wilson:
I know she was a chocoholic.
Josh Robb:
She requested those. My wife made them, they’re great, brought some in to share.
Austin Wilson:
That’s the reward of recording this episode.
Josh Robb:
That’ll be post recording, eat the muffin.
Austin Wilson:
It’s pretty much a salad.
Josh Robb:
It’s got to be. I mean it’s a vegetable muffin so it’s good for you, all around.
Austin Wilson:
I’m pretty excited. So yes, Summer Olympics. They’re either going on or they’re wrapping up. We thought it would be fun to look at the financial aspect of the Olympics. Let’s start at the process for a country to become the host of the Olympics and all the costs that go into that.
Josh Robb:
Yeah. Like you said, Tokyo is one that won the rights to host the 2020 Summer Olympics.
Austin Wilson:
I know. First of all-
Josh Robb:
Which are in 2021.
Austin Wilson:
We’re in 2021, we’re doing the 2020 Olympics. Now, does that mean in three years, we’re going to have the next one? But next year, we’re going to have the winter?
Josh Robb:
Yes, yes. I don’t think they’re changing anything else besides just this.
Austin Wilson:
I have been to Tokyo, it is a big city.
Josh Robb:
Yes.
Austin Wilson:
I like it a lot, it’s fun. Good time. Apparently right now, during the Olympics going on, they’re having a bunch of protests that the Olympics should have still been canceled but they’re clearly not, because they’re going on right now.
Josh Robb:
Yes.
Austin Wilson:
No bueno.
[2:05] – How to Become a Host of the Olympics
Josh Robb:
Well, let’s look at the process. In order to host the Olympics, you have to be selected by the Olympic Committee, International Olympic Committee. Since 1999, this process has consisted of two phases. The first one is any city that is interested in hosting the Olympics will submit a bid before the deadline. And then, once the deadline-
Austin Wilson:
So Findlay could submit?
Josh Robb:
Yeah, anybody.
Austin Wilson:
Let’s do it.
Josh Robb:
Actually, I saw when researching this that for this 2020 Olympics, the US … Each country usually has their own Olympic committee that then manages all the sports and all that stuff. They [the US] refused to submit a bid because they were having some sort of feud with the International Olympic Committee over something, I’m not even sure what. But, they didn’t want to submit a bid even though they were hoping at least one US … But Las Vegas, on their own, outside of any support-
Austin Wilson:
They went rogue.
Josh Robb:
They submitted their own bid on their own, but it was rejected by the Olympic Committee, probably because they didn’t have the full support of the US piece of it. Anyway, side note there. So, you submit your application, and then these applicant cities are required to answer this questionnaire. They have all these questions, and they look at the city size and their infrastructure, and environmental impact for everything. All this stuff goes in. Then, the IOC, they analyze these, and they narrow it down. They’re looking at the strengths, the weaknesses and all that. Once they do that, then they push it down to the next phase where they say, maybe there was 30 cities, now we’re down to five.
Austin Wilson:
“Here’s the realistic options.”
Josh Robb:
“Here’s the ones that we have said, for this next one … ” It doesn’t mean … For instance, we’ll talk about it, Tokyo tried earlier and failed, and then they went again.
Austin Wilson:
You’re not out.
Josh Robb:
Yeah. Another year, you can try again. But for this Olympics, this timeframe, they narrow it down. And then, once they accept those, they’re now candidate cities. So, they went from applicant cities to candidate cities, and they’re now required to submit a second questionnaire which is just more detail of what the original thing was. They may say, in the original thing, “We will have 500 new hotels within X miles,” whatever. And then, they’re going to want to actually play this out first. What is it going to be? They do more details.
Josh Robb:
By the way, a typical city will spend somewhere between $50 and $100 million.
Austin Wilson:
That’s a lot.
Josh Robb:
Between consultants, organizers, travel related to all this, that’s a lot of money.
Austin Wilson:
That is a lot of money.
Josh Robb:
Tokyo, in 2016, which was for the prior Olympics, they bid on that, they spent $150 million and lost that bidding process. That money is gone.
Austin Wilson:
Gone.
Josh Robb:
They spent $75 million and were successful in 2020.
Austin Wilson:
Yeah.
Josh Robb:
They streamlined.
Austin Wilson:
Well, that $75 million probably just went to update the analysis that was done from the 2016 bid.
Josh Robb:
A lot of it was done ahead –
Austin Wilson:
But, what’s that showing us was that there’s a four-year lead on these things.
Josh Robb:
Yeah.
Austin Wilson:
Because just as we’re sitting here, it was a week or two ago, Australia got announced as the 2024 Summer Games.
Josh Robb:
Some of them are even farther ahead than that.
Austin Wilson:
Yeah.
Josh Robb:
There’s a timeframe, you’ve got to build out that infrastructure.
Austin Wilson:
Oh, yeah.
Josh Robb:
You’ve got to build those places that are going to host the events. That’s just a reference point. There’s a lot of money spent on this. The members of the committee also make a four-day inspection of each of those candidate cities to see where their proposed venues are going to be, go into more details about all the stuff that’s going on within that proposal. If you’re Tokyo and you say, “Hey, this is where I’m putting the swimming pool.” And you walk around, “It’s on the side of a mountain.”
Austin Wilson:
Where is this going to go?
Josh Robb:
It’s not going to be ideal.
Austin Wilson:
Right, right.
Josh Robb:
You’ve got to go through and lay it out. Then, once they have that … Actually, this was interesting, I did not know this. When the IOC meets to decide the winner, they always meet in a country that did not submit an application.
Austin Wilson:
Neutral.
Josh Robb:
Yes.
Austin Wilson:
Neutral ground.
Josh Robb:
That way, there’s no form.
Austin Wilson:
No bias, right.
Josh Robb:
There’s been issues in the past about corruption and people paying some of those committee members to vote one way or another. The voting process pretty much is each round, they vote until there’s a majority for one city. The first round, there may be eight or 10 cities and they’re spread out between the committee members, and you don’t have an absolute majority. They’ll say, “Okay, which ones didn’t get it,” throw them out, re-vote until they get that last one.
Austin Wilson:
Yeah. Here’s a question. It’s not really related to this, but it popped into my head. I had friends who were swimmers in college. They said that it was considered good luck and their duty to pee in every pool.
Josh Robb:
That’s a weird thing. I’ve heard that a lot.
Austin Wilson:
That they swim, that they competed in.
Josh Robb:
Yes.
Austin Wilson:
These Olympics, these are the premiere swimmers in the entire world. Do they pee in the Olympic pool?
Josh Robb:
I’m going to tell you that a lot of athletes are superstitious, so …
Austin Wilson:
If they did it somewhere else …
Josh Robb:
My personal opinion is if they did it and kept winning …
Austin Wilson:
They’re going to do it again.
Josh Robb:
You better believe they kept doing that.
Austin Wilson:
And, you might be lighter weight.
Josh Robb:
Who knows?
Austin Wilson:
You might be. Okay. That was not related.
Josh Robb:
Now, with all these new suits …
Austin Wilson:
You mentioned pool.
Josh Robb:
All right. Once that city is chosen, like you said, it’s years down the road from when they’re actually going to host the Olympics. Their job, then, is to then start building out not only the facilities, but the infrastructure because you’re going to have a lot more people coming in for this event.
Austin Wilson:
Yeah. Tokyo has cardboard beds for everyone.
Josh Robb:
Yes, I saw that.
Austin Wilson:
That’s real.
Josh Robb:
Yeah.
Austin Wilson:
Who knows why.
Josh Robb:
It’s interesting. They estimate that, within the Olympic Village, you need 40,000 available hotel rooms or places to stay. There’s a lot that needs to build out, most cities don’t have that ready to go.
Austin Wilson:
We don’t.
Josh Robb:
There’s additional stuff built. So, all that realigns. If you watch the Olympics, not everybody … Tokyo’s hosting, but some of these events are not directly downtown.
Austin Wilson:
Oh, yeah.
Josh Robb:
You’re moving around. You may be a half an hour, hour away for one event to another. If you think back to the Winter Olympics that they had over in Sochi, you were traveling. Because if you’re going down this mountain that’s designed for skiing-
Austin Wilson:
That’s not going to be great for figure skating.
[8:06] – How Much do the Olympics Cost?
Josh Robb:
Right. You’re all over. Transportation is important, all that stuff. A couple examples. Overall, infrastructure they say costs somewhere between five and 50 billion. That’s big.
Austin Wilson:
That’s a big swing.
Josh Robb:
Rio, which was more recent Olympics-
Austin Wilson:
In Brazil.
Josh Robb:
Yeah. Constructed 15,000 new hotel rooms to help accommodate for tourists.
Austin Wilson:
Okay.
Josh Robb:
Sochi invested approximately 42.5 billion for non-sports structures in the 2014 Olympics. That’s just an example of … Now, those things are still available post Olympics, and they can be used.
Austin Wilson:
Right.
Josh Robb:
We’ll talk about that a little bit. London paid 14.6 billion when they hosted the Olympics and the Paralympics. That’s the other thing, too. Paralympics and Olympics go together at all these places. They had that in 2012. So, of 14.6 billion from London, we actually have the breakdown, 4.4 billion came from taxpayers.
Austin Wilson:
Your tax dollars, hard at work.
Josh Robb:
You’ll see this is the case in a lot of places. Beijing spent 42 billion in 2008, Athens spent 15 billion in 2004. And in fact, Athens, their taxpayers will pay about $56,635 annually until this debt is paid off.
Austin Wilson:
Not each taxpayer.
Josh Robb:
Mm-hmm (affirmative).
Austin Wilson:
Really?
Josh Robb:
Now if you recall, they had some issues with that.
Austin Wilson:
With their banking system. Yeah.
Josh Robb:
With debt. It was a burden too much and that was part of the revolt. That was the estimate of what needed to be paid to pay off this debt, per person. Now obviously, they’re not writing checks, every individual are not doing that.
Austin Wilson:
No, exactly.
Josh Robb:
But, that was if you just took the debt by people that was what was owed.
Austin Wilson:
It’s spread across corporations, and high-income earners and stuff.
Josh Robb:
Right. But that was just to give you an idea of the cost for hosting Olympics. Beijing, they spent over 22.5 billion, just building the roads, and airports and stuff. And then, they spent 11 billion on environmental cleanup. That’s part of the thing that the Olympic Committee looks at, is what will be the environmental impact on this whole thing, and they want you to offset some of that.
[10:08] – A Big Loss
Austin Wilson:
So you’ve laid out a lot of costs.
Josh Robb:
Yes.
Austin Wilson:
This is a very costly thing to do.
Josh Robb:
Yes.
Austin Wilson:
It does not seem like it is a money-making endeavor.
Josh Robb:
It is not, for most places.
Austin Wilson:
Unless you’re a winner as an individual in a country, then you do okay.
Josh Robb:
Los Angeles is the only host city that realized a profit from the Games, and that was back a handful of years ago. No one has done it since then. That’s just crazy.
Austin Wilson:
Well, let me tell you what. Los Angeles last hosted the Olympics in 1984. That was the last profit.
Josh Robb:
That was the last time a city turned a profit. In fact, here’s another stat I found. In 2006, Montreal finally finished paying off the debt from their games.
Austin Wilson:
30 years.
Josh Robb:
Which they hosted in 1976.
Austin Wilson:
Yeah, exactly. 30 years.
Josh Robb:
It gives you an idea.
Austin Wilson:
That’s craziness.
Josh Robb:
But, there is income from this.
Austin Wilson:
Oh, yeah.
Josh Robb:
Why would a city want to do it? It’s a couple things. One, the prestige being, “Yay, look what we did.” The second one is you do bring in income and you do have continuing income because people still visit those places. You can still go to certain places and see those events, all the stuff that was built up for it. London brought in 5.2 billion and they spent 18 billion.
Austin Wilson:
There’s $13 billion.
Josh Robb:
The difference between those two. Now, that was on the event. Again, the carryover is, in future years, the hotels you built, they’re still having people get the rooms. You make up more of that money over time. Vancouver brought in 2.8 billion after spending 7.6, so a little bit narrower gap there. That was a Winter Olympics. Beijing had 3.6 billion of income and spent 40 billion on the Summer Olympics, that was a big gap there.
Austin Wilson:
A big loss there.
Josh Robb:
Yeah. And then, I already mentioned Los Angeles was the last one to actually have a profit.
Austin Wilson:
That is significant not making money usually. But like you said, there is a lot more that goes into it, I’m sure that there’s a lot of subsidies and everything, from the government but they’ll probably come for that, too.
Josh Robb:
What’s important to note out is a lot of these cities, money spent on infrastructure especially is one, probably needed.
Austin Wilson:
Oh, yeah.
Josh Robb:
And two, is a long-term benefit because you improve roads.
Austin Wilson:
Railways.
Josh Robb:
Transport, all that stuff. That’s going to be … It’s hard to put a dollar amount on what you actually got out of that because you’re not getting straight income from those things. It’s one of those things you just got to understand, cities aren’t getting into this because they end up with profit necessarily. They get into this because one, it’s a great revenue booster for a short term, for especially small business owners, and those type of things in the area, because when they come in, they’re spending for food and all that stuff. But from a city itself and from a budget standpoint, you’re not making money.
[12:51] – Dad Joke of the Week
Austin Wilson:
Okay. You know what you can put a price tag on, though?
Josh Robb:
What’s that?
Austin Wilson:
A dad joke of the week.
Josh Robb:
A dad joke of the week, it’s priceless.
Austin Wilson:
I got you, Josh. Why can’t pirates finish the alphabet? They get lost at C.
Josh Robb:
They barely get into that alphabet.
Austin Wilson:
Or, they lost an I.
Josh Robb:
They lost an I. You know what, it works.
Austin Wilson:
Or, once they get to X they stop.
Josh Robb:
Yeah, because that marks the spot.
Austin Wilson:
See, I got lots of those here.
Josh Robb:
You’ve got a lot of those jokes. It goes any way, for that one.
Austin Wilson:
R/dadjokes, Reddit.
Josh Robb:
Perfect.
Austin Wilson:
Follow it, love it.
Josh Robb:
Because they got lost at C.
[13:38] – Tokyo 2020
Austin Wilson:
So we’ve looked, historically speaking, at how countries, how cities bid and win the rights, really, to have the Olympics on their location. We’ve talked about the expenses that they occur to prepare for that, which is substantial. Then, we offset that with the income that they generate from that. That’s really all historically looking. Let’s turn the page to 2020/2021, because it’s the same. We’re looking at the 2020 Olympics, happening in 2021. We’re in Tokyo.
Josh Robb:
Tokyo.
Austin Wilson:
Talk a little bit about the current Olympic situation in Tokyo.
Josh Robb:
Yeah. Like you said, they were originally supposed to happen last summer. COVID-19, the virus, that caused them to push it a year back. The hope was that they would be able to recoup some of those missed costs because, as of last year, there was no vaccine, there was no way of safely hosting. We’re at a spot now where the Olympic Committee in Tokyo felt like they could host this with a lot better safety measures in place. One of the things is that they have restricted the number of spectators.
Austin Wilson:
Some events have none.
Josh Robb:
Yes. And worth noting that local ticket sales usually account for 70 to 80 percent of the total income from the Games.
Austin Wilson:
So you thought those earlier Olympics were money losing endeavors? This one’s going to be even more.
Josh Robb:
Yeah. Fans are now banned from many events or limited in capacity. The Olympic organizers announced in March that they had to refund over 600,000 tickets.
Austin Wilson:
Whoa.
Josh Robb:
That’s a big deal.
Austin Wilson:
That is crazy.
Josh Robb:
And then, last December they announced that the total cost for holding out, on waiting, was $15.4 billion and that includes all their build up to it as well. And then, 2.4 billion was on press and then postponement from then to now. The projected post bill for all this has risen now to three billion, because that was December. It’s now three billion cost on top of what they had already spent, that 15-whatever. It’s not projected to be upwards of 26 billion when you count in the lost revenue.
Austin Wilson:
Right.
Josh Robb:
That was the actual cost incurred for delaying it. But then, when you look in the impact of few spectators, all that, it’s now going to be maybe a $26 billion overall hit from everything. It’s crazy.
[15:44] – How Are the Olympics Funded?
Austin Wilson:
Obviously, this year’s some big bills. How are these big bills funded? Well, a lot of that is through sponsorships. We’ve seen that in pretty much every Olympics. But TV ads are big, and local advertisements on banners and stuff is huge. So more than 60 Japanese companies, together, paid a record of more than $3 billion to sponsor the games. Additional sponsors paid another 200 million to extend contracts from last year, after they were postponed to this year.
But ironically, that has been put on hold because a lot of those Japanese companies, I’m thinking big, big Japanese companies … Toyota is the big one that comes to my mind. They’re pulling their sponsorship money right now. They are not happy that Japan continued to have these Olympics in spite of everything that’s going on. And therefore, these billions of dollars that they were going to pay for their sponsorship, they’ve now pulled out.
So, the Olympic situation in Japan, while it will probably have some great television … I’m anticipating watching quite a bit of good Olympic competition. The financial situation, for a country that’s already been on a slow growth motion for a long time, it’s not going to get any better.
[16:51] – Watching the Olympics
Josh Robb:
Yeah. You mentioned watching the Olympics. NBC Universal has the rights, Comcast is their parent company. Comcast, they paid 4.38 billion. So far, they brought in 1.25 billion for just this Games, that was for pre-postponement. So now their sponsors are looking again this year to say, “Okay, are there people wanting to pay more for additional sponsorship for this year?” If you look at 1.25 billion, if you paid four and you got … How many? Four Olympics during that time frame. Okay, you’re probably getting close to breaking even or making a little profit off of that deal.
Austin Wilson:
Well, and if you think about it, $4 billion, I’m thinking NBC had to come up with the money to pay for that, obviously. Sure, they have a great variety of ways to do that. But that expires this year, this agreement. That was four Olympics they got, expiring in 2021 but for 2020 Olympics. It’s pretty much up for bid, probably, for the next round.
Josh Robb:
Everybody will be in there.
Austin Wilson:
And, you know whose going to be players in the next round?
Josh Robb:
Streaming media.
Austin Wilson:
Streaming companies. I’m thinking Amazon, likely, is going to be writing checks to try and get this to work.
Josh Robb:
Apple.
Austin Wilson:
Apple could, who knows. These companies with-
Josh Robb:
A lot of money.
Austin Wilson:
Exclusive streaming is going to be big. NBC obviously can continue to do it, with their Peacock service.
Josh Robb:
Yeah. Obviously, the US Olympic Committee probably has a say in this and the thing about NBC is its free over air. You don’t have to have any service to receive that. If you have an antenna and you’re close to at least some city, you could get it. I’m wondering if that has a weighting, too, if they’ll have to work out some deal that yes, let’s say Amazon gets the rights. But you also have to make sure that at least the primary events are available, something like that.
Austin Wilson:
Probably.
Josh Robb:
I wonder.
[18:53] – Olympics and COVID-19
Austin Wilson:
Because from a business case, for a company like Amazon, they could write a $4 billion check, or $10 billion check tomorrow and host the next six Olympics and be done. But yeah, I think that there probably is some fair and equitable distribution discussion that goes along with that. This is a unique Olympic, obviously. This Olympics is happening in the middle of COVID-19 pandemic that’s still going on. And in some instances, around the world, getting a little worse right now. Talk about some statistics about COVID and this specific Olympics.
Josh Robb:
Yeah. These numbers are as of July 20th. This is right before the ceremony opened, the official ceremony started. 71 athletes had already tested positive for COVID-19. And then, in this same time period, July 20th, Japan had an increase in cases, about a 26% increase from the prior week, or 1700 cases in that time period.
Austin Wilson:
Well, there’s a lot more people there.
Josh Robb:
There are. You talked about the protests, that’s part of what they’re worried about is if you bring in a lot of people flying in, there could be a chance for this to start spreading again.
Austin Wilson:
Yeah, exactly. And, Japan is not, like a lot of the world, is not yet caught up to the level that the US is in terms of vaccination rates. The general public is going to be less apt to be thrilled about going out and doing those sort of things, hence the protests that we’re talking about here. Wow. That’s a lot.
Josh Robb:
This is a financial podcast.
Austin Wilson:
I know. I can’t let this podcast wrap up-
Josh Robb:
Let’s do some numbers.
[20:03] – The Market During Olympic Times
Austin Wilson:
Without talking numbers and nerdiness, because that’s what I do. I’m going to get a little nerdy. I received an email from a great data provider that we use called Bespoke Investment Group. They’re great and they have some really cool insights into this stuff. But some statistics about the markets during Olympic times.
Josh Robb:
Yes.
Austin Wilson:
Okay, let’s talk about that. During the summer, we’re talking specifically summer Olympic games, historically speaking … We can go all the way back to the 1928s, almost 100 years’ worth of Olympics. The 1928 Olympics all the way until now, through 2016 Olympics in the summer, the S&P 500 has been positive during the Olympic time period 57% of the time.
Josh Robb:
Okay.
Austin Wilson:
The S&P 500 has returned an average, so as we know averages can be skewed, but an average of 1.67% over that couple week period.
Josh Robb:
It’s about three weeks, right? Total, give or take.
Austin Wilson:
So the middle of that, the median however, is only .13% of a return.
Josh Robb:
Okay.
Austin Wilson:
So essentially flat.
Josh Robb:
So there’s some outliers.
Austin Wilson:
Yeah. Essentially, there were some really big numbers. For example, the positive financial performance that Los Angeles provided, the S&P 500 was up 9.41%.
Josh Robb:
Oh boy, they liked that. They liked those Olympics.
Austin Wilson:
For that few week period, in 1984. Another outlier, in 1932, for the prior Los Angeles Olympics …
Josh Robb:
They hosted it again.
Austin Wilson:
They hosted it again. That, the S&P 500 was up 16.09% in that period.
Josh Robb:
That was in the ’30s?
Austin Wilson:
Now, that time period, in the late ’20s and early ’30s, if we know about what happened, that was a really rough time in the stock market.
Josh Robb:
It was all over the place.
Austin Wilson:
A terrible sell off. 50% would have been light, it was 80%, so rebounds happened like that, 16%. But anyway, funny that the two biggest returns happened when the Olympics were held in Los Angeles.
But, if you look at it a little bit differently, if you look at the host country stock market, and these are returns in their local currency.
Josh Robb:
Okay.
Austin Wilson:
But, the host country stock market. For example, Rio de Janeiro in 2016, the Brazilian stock market was up 2.49% over that period.
Josh Robb:
Nice.
Austin Wilson:
London, in 2012, 3.91%. In 2008, now there was a lot of other things going on in 2008 …
Josh Robb:
Apparently. I heard.
Austin Wilson:
Beijing, the Chinese stock market was down 7.69% during that period. It’s just crazy, some of these numbers. But, if you look at them in the same terms that we had just talked about, those local country stock markets were positive 77.8% of the time.
Josh Robb:
Oh, that’s nice.
Austin Wilson:
That’s even better than the 57.1% of the S&P 500. The median, or the middle return, so that’s usually a better indicator, was up 2.49% for the host country.
Josh Robb:
Awesome.
Austin Wilson:
And, the average was actually lower at 1.82%.
Josh Robb:
Interesting.
Austin Wilson:
Interesting. Anyway, if you’re looking to make bazillions of dollars from big stock market swings in the Olympic time period, that’s probably not the best bet right now.
Josh Robb:
If you’re only investing once every four years for the summer Olympics.
Austin Wilson:
Yeah. The averages typically have averaged some pretty muted returns, so I wouldn’t get your hopes up for a gigantic rally at this point.
Josh Robb:
What I would like to see is the stats on countries that have the most gold medal wins and how that correlates to the stock market.
Austin Wilson:
We need to get on Paul.
Josh Robb:
Yeah, total market count.
Austin Wilson:
Paul from Bespoke.
Josh Robb:
Total medal count per market performance.
Austin Wilson:
It’s happening.
Josh Robb:
Irrelevant, it’s what it would be.
Austin Wilson:
Next year, next Olympics, Josh.
Josh Robb:
That’s what it would be.
Austin Wilson:
It would be totally irrelevant, yeah. Is that a leading indicator?
Josh Robb:
No, it’s not.
Austin Wilson:
When America wins the most medals, does our stock market outperform for the next decade? Or four years. We’ll see. So anyway, that was my nerdiness. But I wanted to remind our amazing listeners of two things. Number one, it’s still not too late. It is still not too late to enter our 2021 Second Half Stock Draft competition. It’s not too late, go ahead and do that. If you entered now, you might actually be beating people because some people, like me, have already lost money with fake money.
Josh Robb:
I think I’m in last place.
Austin Wilson:
Well, I wasn’t going to bring that up, Josh.
Josh Robb:
It’s all right.
Austin Wilson:
As always, number two, check out our free gift to you. It’s a brief list of eight principles of timeless investing, these are overarching investment themes meant to keep you on track to meet your long-term goals. It’s free on our website. We don’t mention the Olympics in that, at all. Good to know, though. Josh, how can people help us grow this podcast?
Josh Robb:
Yeah. Make sure you subscribe, that way every Thursday you get our most recent episode sent right to wherever you listen. Leave us a review at Apple Podcast, it’s always great, it helps us rank higher so that more people can find us. If you have any questions or thoughts about the Olympics, you can shoot us an email at hello@theinvesteddads.com. And then, if you know somebody who loves the Olympics, you could share this episode with them. Maybe they’ll find something interesting. All right, we will talk to you next time.
Austin Wilson:
Until next Thursday, have a great week.
Josh Robb:
All right, talk to you later.
Austin Wilson:
Bye.
Outro:
Thank you for listening to The Invested Dads Podcast. This episode has ended but your journey towards a better financial future doesn’t have to. Head over to theinvesteddads.com to access all the links and resources mentioned in today’s show. If you enjoyed this episode and we had a positive impact on your life, leave us a review. Click subscribe and don’t miss the next episode.
Josh Robb and Austin Wilson work for Hixon Zuercher Capital Management. All opinions expressed by Josh, Austin, or any podcast guest are solely their own opinions and do not reflect the opinions of Hixon Zuercher Capital Management. This podcast is for informational purposes only and should not be relied upon for investment decisions. Clients of Hixon Zuercher Capital Management may maintain positions in the securities discussed in this podcast. There is not guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance pay not be indicative for future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses, which would reduce returns. Securities investing involves risk, including the potential for loss of principle. There is not assurance that any investment plan or strategy will be successful.
