FIC Weekly 24.08.20

What a week it has been on Football Index! Marketing campaign news, dividend announcement, the return of Ligue 1 and two European Tournament finals.


Marketing Campaign


Each previous, large marketing campaign has led to plenty of new sign-ups to Football Index and we always feel the impact of a successful campaign via the positive movements throughout the market.


Next month, Football Index will undergo their biggest-ever marketing spend and this could lead to plenty of new traders. Once new traders are comfortable and confident with the platform, they are likely to deposit further and so the impact of this marketing campaign is likely to have a positive impact on the market for many months.

The marketing director of Football Index Tweeted about the huge upcoming marketing campaigns

Of course, everybody (Including me) was questioning how successful a marketing campaign would be when the confidence of many existing traders is relatively low and when the lack of confidence is being reflected in the movement of player's prices throughout the market.


Dividend Increase


However, just one day after Mike's Tweet, Football Index announced that their will be another dividend review.

An increase in dividends gives all players on Football Index a boost in their intrinsic value and so this is the best news that we could receive. Hopefully the new dividend chart will be more 'exciting' and 'ambitious' than the last one was 'generous'.


The dividend increase is taking place this Wednesday and their will be more content added to Football Index Club throughout the week.


Ligue 1's return


The combination of the marketing and dividend news may have contributed to the market's reaction to the return of Ligue 1 as plenty of players increased in price or saw their spreads tighten considerably.

Onyekuru rose 25% two after being highlighted on FIC

Just two days after being highlighted on Football Index Club, Henry Onyekuru rose from £0.52 to a peak of £0.65 (A 25% increase) as he started for Monaco. However, he was taken off at half-time and his spread has widened since.


*Sofiane Diop came on for Onyekuru and the 20-year-old (Currently trading at £0.69) was very impressive displaying a range of both accurate short and long passes as well as delivering two corners (One of which was whipped in excellently).


Many other Ligue 1 players rose. The 5X IPD promotion may have also had a significant influence on the recent price movements.


Given the recent rises in Ligue 1 players, it may now be better to focus on leagues where spreads are still particularly wide. In 3/4 weeks time it is likely that spreads will tighten on a number of players across the other 4 PB eligible leagues, especially given all of the upcoming developments in the platform.


Champions/Europa League Finals


The Champions and Europa League finals served as a friendly reminder of how important it is to sell into the speculation and hype. Timing is key as mentioned in many previous blogs and the widening of spreads following these finals shows how it is usually best to sell in the build up to an event rather than after it takes place.

Joshua Kimmich celebrating his huge dividend returns

It was interesting to witness Joshua Kimmich's instant sell price on the day of the Champions League hovering between £5.35 and £5.40 throughout the day. During the game, Kimmich's instant sell price dropped to £4.99. Of course he went on to earn a further £0.10 in matchday dividends, but this showed how important speculation plays a part in the demand for a player.


These European Tournaments also showed the huge returns that can be earned via the gold matchdays in the later stages of the Champions/Europa Leagues. Joshua Kimmich managed to earn an incredible £0.46 in matchday dividends in just 10 days.


What's coming up?


As mentioned, we have a huge few months coming up and we could see huge growth again in September as we did last season.


Last September was also the best month for Football Index Club highlighted players with 40 players highlighted and their average rise after just 30 days being an incredible 23.95%.


Hopefully we will see some more huge rises in FIC highlighted players next month too as we have the following events to look forward to:

One of the main things to be aware of over the upcoming weeks as momentum builds is the trends that develop. If last season's dividend increase is anything to go by, we could see some players become massively overpriced due to temporary hypes and trends.


Recency bias and FOMO hit particularly hard when there is a lot of hype and speculation. The dividend increase and marketing campaign may well lead to a lot of enthuisasm and so it will be crucially important to avoid getting caught out by buying into players after they have already rocketed up in price and become overpriced.


Further information on the impact of recency bias can be found here.

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