At first thought, there may not be many similarities between an investing and football. However recent England performances at Euro 2024 led to our Chartered Financial Planner Chris Wheeler seeing how winning on the pitch is similar to achieving success in the financial markets. Chris explains:

I started writing this after watching the England vs Slovakia game, seeing those fans leaving the stadium before full time and then rush to get back in as

they heard the roar of the crowd, knowing they’ve missed out on a potentially golden moment. It got me thinking about the similarities to investing (I know, I need to get out more….).

Just like in football, the key to success in the financial markets often lies in persistence and resilience. Investors, much like football fans, may face periods of uncertainty, volatility, and temporary setbacks. Market downturns can feel discouraging, and it’s tempting for many to pull out of their investments when the going gets tough.

However, the history of both teaches us the value of staying the course. In football, those last-minute goals are a result of continuous effort, and never giving up until the final whistle. Similarly, the stock market rewards those who remain patient and invested over the long term. Here’s how these two seemingly different worlds align:

1. Unpredictability: Both football and financial markets can be unpredictable. While we may have a reasonable expectation of one team to win over another or market to perform well this can change in the last seconds with surprises results improving the outlook unexpectedly.

2. Patience Pays Off: Teams that keep their focus and drive until the last minute often find success. Investors who weather the storms and maintain their holdings typically see better long-term gains.

3. Emotional Control: In both scenarios, managing emotions is crucial. A hasty decision in the face of a setback—like a fan leaving the stadium early or an investor selling in a panic—can result in missing out on the eventual rally or goal. Invariably the turnaround happens quickly and if you are not in the stadium (invested) you are missing out.

4. Team Effort and Expertise: Behind every last-minute goal is a team of players and coaches. Similarly, behind successful investments are often financial advisors, analysts, and a robust support system. Not being overly reliant on any one key individual.

The statistics for missing out on just a handful of the best days in the markets can have an outsized impact on your overall returns and both realms highlight the power of this perseverance. In football and investing, staying the course through the uncertainties can lead to the most satisfying victories.

As was highlighted yet again by the last minute winner against Holland yesterday.

They think it’s all over…….