#adidas

Will financial planners bring out a Naomi Osaka ETF?

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Japanese investors can get star-struck with investments. In 2015, popular pop-idol band AKB-48 saw the stocks of companies it was sponsored by surge 136% relative to the market. Aggregate sales of those companies surged 46% and 30% over the following two years. Such is the ‘hayari‘ (boom) culture in Japan. Corporates know this.

Since the US Open win by tennis star Naomi Osaka, sponsors are lining up to sign her. Prior to the win, Nissin Foods, WOWOW & Yonex were already sponsors. Nissan has just signed her. Since the win, the Topix has risen a tad over 6% while Nissan, Nissan & WOWOW have risen 7.5% in aggregate. Yonex has jumped 12.2% Early days to be sure, but the likelihood is that if she is sponsored by some smaller less liquid stock names these stocks could well fly.

Forget fancy models and esoteric investment strategies. Find whatever Osaka will be sponsored by in Japan and outperform through popularity over underlying earnings performance.

Any financial firm that launched a Naomi Osaka basket would likely see massive inflows and be able to charge higher fees on the back of it. Will the marketing departments wake up?

More love for Naomi Osaka

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20yo Naomi Osaka deserves every success she gets. She is without doubt the hottest marketing prospect globally. There is no media spin or polish with her on any level. She is authentic in the extreme. No prima donna antics or bragging. If anything her press conferences since returning have defined her as ‘what you see is what you get.’ Humility and grace. Pray we get more millennials like her. She shows one doesn’t have to beat their chest in ridiculous ways to get attention.

No wonder Adidas want to throw $11.9m per year to sponsor her. As a Nissan ambassador, despite her media appearance in front of the Leaf electric vehicle, when asked Naomi just let her inner petrol head scream her favorite car – the GT-R. Lucky for her she will get one in white.

The world of tennis couldn’t have a better ambassador for the game. Let’s hope that the media don’t pry too deeply into her private life (good luck with that) and her sports manager doesn’t put her on a multi-year roadshow from hell to please sponsors which would put any star to the test.

Cheikmate

Australian Wallabies coach Michael Cheika is clearly massively under pressure. Sporting the second worst win/loss record of any Australian rugby coach he hit out at journalists questioning whether it is time to pack it in by suggesting they take mental disorder suppressing “pills” for exposing his dreadful stats. His team was walloped by New Zealand 40-12. The All Blacks retain the Bledisloe Cup for the 16th straight year.

Cheika talked of “passion” for the job but a great coach is one that extracts the best from the players by making them believe in themselves and achieve well beyond what they think they can. Australia need a Brian Clough type coach rather than the thuggish style of Cheika. Basic discipline is lacking in the Aussie team and that stems from the top. A coach that was confident in his ability to attain quality results wouldn’t resort to cheap shots. He’d merely let the scoreboard do the talking. Instead he shows the pressure is too much for him.  This press conference (especially from 5:30) confirms he is not right for the role. Time to replace him.

CM has made the argument multiple times – if money was taken away from the game all current All Blacks would still play proudly for their country. For the Aussies it is likely only a handful that might feel the same. Cheika is not building a team steeped in history, but making excuses for his dreadful deficiencies. He may accuse journalists of being clueless by stating they’ve never coached before, but should he possess an enviable success ratio the press wouldn’t ask for reasons why the Wallabies were road kill.

Cheikmate- time to go gracefully. The fans aren’t buying it.