Value sky rocket last few months
Hi, I'm new here & have a question which long term players may know the answer to...
When looking at some big name players I can see that many of them have sky rocketed in value over the last 3 months...
1 - Do you think this is because the end of the season/speculation around transfers and therefore the prices may fall again
2 - Do you think this is because of the newly introduced performance buzz and therefore big name players are rising in price and may NOT fall again?
3 - The index is more popular now and so prices have shot up due to more users and therefore won't come back down?
@TerraTushi Big name players from European leagues have increased due to performance buzz. I personally think many of them will continue to grow once the season starts and the dividends start to come in. I think right now there is a little bit of a lull as many people are still focusing on transfer rumours (especially with what happened to Morata), but definitely still some bargains out there.
Thanks for the reply. I have my eye on a few but wondering whether I should get involved now so maybe wait a few more weeks and see if they drop any further.... I guess that's what trading is about! lolll
I was worried that prices would fall, like a normal correction in the global markets. Thing is, because FI is relatively new with only a few thousand players, it'll keep growing more and more. It'll be a long time until the markets 'correct', so should be fine unless FI make a massive change that results in people stopping trading.
My personal opinion is that players were massively over-valued last season and the market was heading for a serious crash. The prices didn't make sense - the market was inflating because it was inflating (people were seeing prices going up and buying assuming they would keep inflating) and had little resemblence to the actual value of the players. All you own is the chance to win dividends so the value of the player should be based on their likely future dividends.
However since then, dividends have tripled. Logically players should on average therefore be worth three times what they were worth last season. This hasn't happened so far (for example Kane is trading for less than what he was last season which doesn't make sense as his potential returns are far higher). I'd therefore expect prices to rise.
PB players have shot up. However media buzz players are relatively static despite the fact that media buzz returns will be roughly double that of previous (150 days of three tier and 200 days of 5p) as well as the fact any player has a shot at a PB.
I think it's 2 and 3. Highly doubt the prices will fall, only rise.