In my last article I briefly summarised the changes that will be made to the Football Index from 1st November 2017.
To recap, the Index are doubling performance buzz (PB) pay-outs and adding 50 new players to the market every day, until all players from Europe’s top five leagues, and the Champions League and Europa League teams, are available to buy.
In anticipation of the increased PB pay-outs, many of the players who have either won PB, or have regularly been in the mix for PB to date, shot up in price.
With every batch of 50 players added to the market, the PB will be become more and more competitive, meaning the chances of each player winning the PB will be further reduced.
Given that the competition for PB for every position is going to substantially increase, I expect there will be more fluctuations in the market whilst traders adjust to the changes.
The doubling of the PB is great, but many traders, including myself, are now left wondering what the best strategy will be going forward to get the best return for your money. Is the best strategy buying shares in the best players in the world who are most likely to win PB at a high share price and looking for consistent dividends, or is the best strategy to be patient and buy players currently under the radar now but are likely to have good prospects of winning PB at some point during the next three years?
Perhaps the best strategy will be somewhere between the two. For those traders willing to be patient and forego winning any PB in the short term then the strategy of buying players on the cheap in the hope they will eventually grow into PB magnets may reap significant rewards.