Vintage & Classic Ferrari’s Are in a Bull Market

Vintage & Classic Ferrari’s Are in a Bull Market

Vintage & Classic Ferrari’s Are in a Bull Market

$RACE

Last week and just after the S&P 500 posted yet another record high, a vintage Ferrari went under the hammer for the highest price ever for a car at auction, it the latest indicator that while investors may fret about frothy financial asset valuations, specialist car collectors are still prepared to pay the price for a Tier 1 Ferrari.

An early employee at Microsoft sold the 1962 Ferrari 250GTO for $48.4-M at the weekend, that is more than 25% above the previous record for a classic car sold at auction 4 years ago.

The Provenance of this Ferrari 250GTO: The car sold Sunday is the 3rd of 36 250 GTOs built and is one of four early cars subsequently converted by the Scaglietti coachworks in 1964 with more aerodynamic bodywork designed by Pininfarina. The Ferrari 250GTO is acknowledged as being one of the most significant racing cars of all times. The 1st owner of this specific car, Edoardo Lualdi-Gabardi, was 1 of the most successful Italian privateers on track and in hillclimbs. With it he took the class win in the 1962 Italian GT Championship. Its 2nd owner, Gianni Bulgari, took first in class and 4th overall at the 1963 Targa Florio and the 3rd owner, Corrado Ferlaino, repeated that class victory and came 5th overall at the same endurance race the year after with the modified bodywork.

And while the S&P 500 Index’s fresh all-time high Friday (and Monday and Tuesday) claimed some headlines, it turns out an iconic sport’s racing car was the more lucrative buy.

Hagerty’s index of Ferrari prices has 3X over the past 10 years, that more than the 158% rise for the US equity Bull market.

The records come after a Leonardo Da Vinci masterpiece sold for $450-M, the most ever for a piece of fine art. It all shows market watchers should probably be getting worried, says a Sydney-based investment strategist, who wrote his PhD thesis on efficiency in markets and asset bubbles.

“Exuberance is back in a big way,” he said. “The fact that people are paying record amounts for Ferraris and paintings and share markets are at record highs causes me to be a little bit more cautious.”

Notably, even with dividends reinvested, Ferraris commanded a faster increase in value than listed US companies since the end of Y 2009. Gains on Tier 1 iconic Ferraris’ car, calmed over 3 years as fewer came to market and US stocks have outperformed, there are billions of shares for sale and just a few Tier 1 Ferraris.

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 130.04 28 August 2018 1.84 129.55 130.43 128.765 771,500
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Neutral (-0.13) Neutral (-0.07) Neutral (-0.10) Neutral (-0.22)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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