The irony of it all…
This board – as many others - happens to represent the market (or at least a fraction of it anyway). The price of a security is set by the opinion of the common voice (or a hedge fund flips or market equivalent). That’s why the market isn’t always right. It’s constantly trying to find the balance between the left and the right or the bulls and the bears based on opinions and data (that may or may not be correct at the time of announcement). This is why we like it. This is why investors “invest”. Even the risks we take can make it interesting if you have the stomach for it. That’s why there are different types of investors. The ones who choose to manage for themselves and the ones that pay others.
Can automobiles and art compare to equities?
The new C7 will list around 100k (well optioned). Someone just paid 1M for one at the Barrett- Jackson Auction. Why would someone do that? They bought the FIRST C7 with the hopes that it will be successful. There’s also a chance that the car will sell for more than list when it shows up in dealer showrooms. The last time this happened was with the pace car in 1978. The original “limited production” was supposed to be 800 or so with special tires and trim. The demand was so great that they ended up making over 6k of them. They also got much higher than list. Over the years the value dropped. It’s only until now that a mint condition one can get the original list price. Much like equities isn’t it. Art and Paintings… that’s a whole other story.