@Vespasian32 said in Why is Messi dropping ?:
@Spot-the-value. I IS mine day after he won divs... Cos despite winning his price had gone down again. Unfortunately seems that every win now is just being used as a chance to sell to market so more and more people are listing him.
I understand why, like we all had an exit point and it will end up being a race. Its a horrible kind of index paradox...the best player in the world winning consistent divs but losing value.
There will be exit points where divs won will outweigh the drop, especially if you can afford to keep topping up. I was at that point tho where I could still IS for profit and just decided to call it a day and end the frustration.
Worst and best thing about the index really.. Its not about being right and picking the players that win prizes... Its about mob sentiment... And when the mob is repeatedly rallied on all social platforms to sell anyone over 30 (huge thing in twitter at the moment) and sell anyone over £3 (theme on here and twitter) it catches on and becomes a 'thing'.
Do you think he is worth his price?
If he is then it doesn't matter what other people think and do because you can hold for 3 years and pick up the dividends. To be truly worth the price, you should be able to hold for 3 years, recycle indefinitely till he Retires and not sell.
If doing the above doesn't make you money then he was never worth the price at all and everyone was playing chicken by holding him and assuming they would sell before everyone else. That includes you.
Depreciation of old players shows how inefficient the index is. It should be linear but isn't remotely.