(London, England) The Sports Trading Club has defied a downward trend in financial markets in Australia with the announcement of a 21.4% profit for the month of May.
The Sports Trading Club's extraordinary success, while the Australian market suffered its worst monthly performance in a year, comes at a time considered by many to be as dangerous a moment for Australian stocks since 2007.
The Australian market disappointed in May, with the S&P/ASX 200 currently down 4.8% month-to-date-on track for its worst month since May of last year, when the European debt crisis sparked a selloff in stocks globally.
Stocks in Sydney have been weighed by several factors. Fading optimism over the economic recovery in China, a key importer of Australian resources, hit mining stocks; while expectations that the U.S. Federal Reserve could start to scale back its bond buying program reduced the attractiveness of the market's high-dividend stocks.
"Foreign capital seems to be leaving these shores. The Australian dollar's fall makes the country's assets riskier than they have been in the last several years," said STC General Partner, Anne Larter.
"This is through no fault of the Australian dollar. It's simply the weak Japanese Yen making US-dollar denominated assets more desirable," she said.
"There is now a realisation that trading on sport and prediction markets is more reliable and more transparent than trading on traditional financial markets, " she said. "This has created a buzz and now the Sports Trading Club has investors everywhere scrambling to join."
"The success of the Sports Trading Club in its first five months in Australia has caught the imagination of investors," said Mr Howard Robin, STC Group Operations Manager based in London.
The Sports Trading Club, which operates as a private investors group in England, recently allowed the general public to become associate members in Australia.
The Sports Trading Club reported a 305% profit for the first quarter of 2013. Its profit for March increased by 123.9 % from the previous month, with 61.6% of all trades being winning trades. It is over 400% up on the year to date.
"Our results are far higher than projected," Mr Robin said.
"We make money out of other people's mistakes for which we don't apologise. When others gamble and we trade, it is a one sided game that gives us an advantage every time that you don't find in traditional financial markets," he said.
"It is an emerging industry that is experiencing a boom greater than mining, one that is more transparent than the share market, more reliable than speculating on gold and foreign currencies, and is now the most profitable form of e-commerce in the world today," Mr Robin said.
The Sports Trading Club is planning on expanding throughout Asia and is in negotiations with joint venture partners in several markets including South Korea, Vietnam, Japan and China.