Week 3 – boom time for Premiums

It’s raining money on the index this week and the Premiums have finally started to pick up. Although the total yield on this fund still lags behind the others, the Premiums grew by 3.3% during the course of the week – or £110 in cold hard cash.

My hunch is that this was partly driven by traders looking for ‘safe’ places to stick the remainder of their money before the cut off period for the bonus on 30th June. But also, it’s felt like Premium prices have been depressed for a few weeks as traders looked in the bargain basement, so perhaps a rebalancing was always on the cards.

The main beneficiaries this week were Pogba and Mbappe. For Pogba, a transfer away from Man United now looks highly unlikely this summer, with David Ornstein (a man usually in the know) rating his chance of a move as ‘one out of ten’. Traders will assume there will be several months of ‘Pogbuzz’ to follow as he continues to agitate for a move – all good for his price at this point.

Mbappe is benefiting from traders beginning to believe that Neymar will leave PSG during this window, leaving him as the main man. On top of that, Mbappe looks unlikely to sign a contract extension with PSG so there is a huge transfer saga brewing there for the future. He’s a long term hold that I’m very confident about.

Sancho also crept up a little during the week. Dortmund have a good set of fixtures at the start of next season and look like a decent bet for the Bundesliga title so, again, he’s one I’m very confident to hold.

Messi pulled in some dividends but his price continues to stall with traders being concerned about his age. I’m in two-minds now about whether he will be a good hold for next season but I’m going to continue to hold for now, at least until I know how the Barcelona team shapes up. Sterling is also stalling a little but his age, his MB pull, Man City’s dominance and the upcoming Euro 2020s mean I’ve no plan to let him go.

You can see the updated figures behind this on the Premium assets page.

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