Saturday, October 25, 2008

What happens when my SOI Retires?


So you are worried that the second FAVR retires for the 4th time that your SOI price is going to trade at $0.50. Well don’t worry sports fans because this market is driven by you and there will always be a strong bond between a fan and his favorite athlete since childhood. You base your own life events relative to your bond with your sports idol. I remember when I got grounded for spray painting the cat because that was when FAVR moved to Green Bay. I remember the first time I touched a girls boob, it was when FAVR won the super bowl. I remember when I was studying for that tax mid-term, it was when FAVR shaved his head for his wife who was fighting cancer. Obviously, a retired player cannot have a solid performance to help influence short term trades but the love for an all time favorite never dies but grows over time. Also, a retired player could quickly take on a career that could be easily viewed and valued by the public: Coaching Jobs (Ex: Avery Johnson – Former head coach of the Dallas Mavericks), a sports analyst role (Ex: Steve Young) or try and pursue a career outside of sports that could impact their SOI price (Brian Bosworth).
However, if you are like me then you are dieing to apply quantitative analysis to your Oneseason sportfolio I recommend looking at your retired legend as a bench mark to the current players in their position. For example, this is a down year in the NFL for quarterbacks with ROMO and BRDY hurt and PMAN coming back from injury maybe you would want to load up on Dan Marino or John Elway. They could be your gold play in a position downturn (NFL:QBs). So if you want to rationalize your AIRJ play compare the current players stats to those of our favorite legends and see who is the better buy.

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