Giles Coghlan LLB, Lth, MA
HYCM
Adidas is a German sportswear company and it tends to have a very strong time of the year between March 12 and April 27. The average return over the last 22 years has been an impressive +10.09%. The largest profit was in 2000 with a gain of +11.31% and the maximal gain during that period was a very large +39.03%. There have only been losses in 2 of those 22 years during that period.
Is now a great time to buy in anticipation of March gains on global recovery hopes on vaccine optimism? Or is it best to wait until mid-March for buyers?
Trade Risks:
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The main risk to this trade is from any risk off trading on global growth weakness.
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Any sharp rise in COVID-19 cases in Europe will invalidate this outlook.
High Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to HYCM’s Risk Disclosure.
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