Many have wondered why one of the greatest boxers of our generation, Philippines’ Manny Pacquiao, has not retired gracefully into hero-dom following his loss to Marquez late last year. For a fighter – it could be pride, ego, or, sadly, lack of funds. In Pacquiao’s case it is none of the above, we suspect as a politician, the diminutive boxer has realized the wealth effect-creating impact of his victories of the nation – which at no other time in history needs something positive to reflect on. While in the US, investors have POMO to almost guarantee an up-day in stocks, in the Philippines, stocks rise 73% of the time after a Pacquiao win (compared to 52% average) and rise a stunning 0.5% (against a 0.04% average). Pacquiao is 6-1 on to win against Brandon “Bam Bam” Rios on Saturday (86% likely to win); is there a Philippines ETF?
“Pacquiao’s victory in the ring creates a nationwide euphoria that things will get better — positive sentiment, positive investment,” said Jonathan Ravelas, chief market strategist at BDO Unibank. “A victory by Pacquiao will help lift the Philippine spirit at a time when it’s facing the impact of calamities. The nation definitely needs to hear something positive right now.”
Chart: Bloomberg
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via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/vffZ3nVSwsA/story01.htm Tyler Durden