Long term stability?

  • Joined the index 4 months ago and started small and gradually increased my port as I understood and gained confidence in fi. Big decision to make, my isa which gets modest interest rate cant take anymore deposits. So the rest of my savings is in a account with an awful 0.8% interest. I fell with the new announcement I could smash that in divs alone. From a more experienced traders point of view do you think the market will now become more stable especially around the top end?

  • @NewUser397358 Will probably stable out for the next month or two leading up to christmas/new year, as your big div earners like Messi/Neymar benefited the most out of the announcement, they are the ones that consistently post pig PB scores, therefore have more of a chance of winning divs consistently compared to someone who wins it one off.
    They'll probs continue to rise in price, and I predict probably in half a year or so we'll be back in the same situation. IE: their price would've risen to a point where the divs on offer no longer seem attractive, and more money will be piled back into cheaper players, similar to how they were before the bonus period started. That's my guess anyway, but hopefully it won't get to that point.

  • @Andy you last point on the young players was also on my mind. I've got a few that I'm very confident in. I was planning on going big on top end players but some of the youth has dropped to the point where of you prediction happens theres a good profit to be made.

  • @NewUser397358 I mean thats up to you if you want to do that; if you feel you've got a grasp of how the market works in the short time you've been on here then be my guest and go for younger players.
    The only thing I would say is your money would probably be better off spent elsewhere for the time being, as you'll be missing out on divs earned by any of the big boys that usually win PB (the previously mentioned Messi/Neymar for example, or even slightly cheaper at Kross/Parejo), as the youngsters will likely earn zero divs.
    There's nothing wrong with piling money into div earners now and selling them to put money into youngsters when you feel the top earners have stagnated.

  • @Andy yeah that's something I need to get better at tbh buying and selling at the right times too often I've had money stagnating in a player I should have sold and put into another.

  • Worth pointing out they don’t owe anyone any money, they’re not obliged to pay bigger dividends. In truth until they start leading by explaining the dividends better, all they’ve done is increase their costs, it’s not going to suddenly double the user base. So in terms of sustainability - when most of any new dividend payout will be going to existing holders - I think they’ve done really well; particularly from the basis of an existing user like most of us here.

    Also worth highlighting that they’ve said:

    • The Dividend table will be reviewed and benchmarked with a new table published in advance of every new football season.

    Making it clear it will keep moving ie the value of our dividends relative to our bet today will grow every season.

    The value of a div relative to an existing user’s Neymar at £8 is irrelevant, it’s the div value versus their original buy price. And that’s what we should remember today as existing users - they’ve just increased the value of all of our existing holds, and confirmed a path to continue to do so. On that basis, anyone we thought was value at any point in the past on pb/mb potential, is now more valuable, and will be more valuable again every August!

    I’m pleased with it 👍

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