No value threads now?
03-09-2020, 09:40 AM
#1
Rennlist Member
Thread Starter
No value threads now?
I bet a good chunk of GT3 owners who worry about the value this and value that cant sleep now.
I predict the 991.2 GT3s whose value tanked quite a bit already will take a pretty big hit with markets continue to crash. Low 6 figures.
When markets crash, sports cars are first to go.
I predict the 991.2 GT3s whose value tanked quite a bit already will take a pretty big hit with markets continue to crash. Low 6 figures.
When markets crash, sports cars are first to go.
03-09-2020, 10:00 AM
#3
Rennlist Member
AMEN. Now we'll be lucky if it stays that way for half a day.
The following 5 users liked this post by fibredog:
2.7 RS (02-14-2021),
evilfij (03-09-2020),
Jason Zhang (03-09-2020),
kfmcmahon (03-09-2020),
MerlinRS (03-09-2020)
03-09-2020, 10:28 AM
#5
Originally Posted by fibredog
My 991.2 GT3's value is holding up better than my stock portfolio.
The following users liked this post:
fibredog (03-09-2020)
03-09-2020, 12:05 PM
#6
I bet a good chunk of GT3 owners who worry about the value this and value that cant sleep now.
I predict the 991.2 GT3s whose value tanked quite a bit already will take a pretty big hit with markets continue to crash. Low 6 figures.
When markets crash, sports cars are first to go.
I predict the 991.2 GT3s whose value tanked quite a bit already will take a pretty big hit with markets continue to crash. Low 6 figures.
When markets crash, sports cars are first to go.
03-09-2020, 12:47 PM
#7
Race Director
Working with a client who does hedging on Wall Street for MBS. He runs a hedging service for mortgage brokers. It looks like a lot of his clients are imploding, because the hedges they had in place are losing big money, but there's no liquidity to convert those loans into lower interest rates. So the clients are canceling the loans, only leaving his clients with huge hedge losses.
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03-09-2020, 12:49 PM
#8
Rennlist Member
03-09-2020, 02:48 PM
#9
After the financial crises that started in 2008, collector cars, especially Porsche values took off. Wealthy people moved large sums of money into real estate, art, wine and collector cars and values shot up incredibly. When the stock market is going and blowing, capital moves there and cars, art and wine come down as we have see for the last several years. I expect hard assets will take off again soon. Intuitively your thinking is how most people think about it but reality is often different than how one would think.
This event we are experiencing doesn't' take place often. Those of you who have lots of equity on assets like real estate are probably thinking about converting the equity to debt - likely very smart. If your home is paid for - for example. Put 50% leverage on it at 150bp's over 1 month libor so 2% interest only. Use the debt to buy high quality equities yielding 3% or better dividends. The dividends essentially pay the mortgage debt and once the underlying once in a lifetime cheap equities come back in 3-5 years, then sell enough to pay off the mortgage debt and pocket the rest to buy more Porsche's. From April 2008 to Jan 1, 2020 the Dow went from 7,500 to just under 30,000 but going from 13,500 to 7,500 was painful. Good times.
This event we are experiencing doesn't' take place often. Those of you who have lots of equity on assets like real estate are probably thinking about converting the equity to debt - likely very smart. If your home is paid for - for example. Put 50% leverage on it at 150bp's over 1 month libor so 2% interest only. Use the debt to buy high quality equities yielding 3% or better dividends. The dividends essentially pay the mortgage debt and once the underlying once in a lifetime cheap equities come back in 3-5 years, then sell enough to pay off the mortgage debt and pocket the rest to buy more Porsche's. From April 2008 to Jan 1, 2020 the Dow went from 7,500 to just under 30,000 but going from 13,500 to 7,500 was painful. Good times.
The following users liked this post:
2.7 RS (02-14-2021)
03-09-2020, 03:37 PM
#12
As Mr. Buffet says, when the tide goes out, you can see who is swimming naked.
03-09-2020, 03:40 PM
#13
After the financial crises that started in 2008, collector cars, especially Porsche values took off. Wealthy people moved large sums of money into real estate, art, wine and collector cars and values shot up incredibly. When the stock market is going and blowing, capital moves there and cars, art and wine come down as we have see for the last several years. I expect hard assets will take off again soon. Intuitively your thinking is how most people think about it but reality is often different than how one would think.
This event we are experiencing doesn't' take place often. Those of you who have lots of equity on assets like real estate are probably thinking about converting the equity to debt - likely very smart. If your home is paid for - for example. Put 50% leverage on it at 150bp's over 1 month libor so 2% interest only. Use the debt to buy high quality equities yielding 3% or better dividends. The dividends essentially pay the mortgage debt and once the underlying once in a lifetime cheap equities come back in 3-5 years, then sell enough to pay off the mortgage debt and pocket the rest to buy more Porsche's. From April 2008 to Jan 1, 2020 the Dow went from 7,500 to just under 30,000 but going from 13,500 to 7,500 was painful. Good times.
This event we are experiencing doesn't' take place often. Those of you who have lots of equity on assets like real estate are probably thinking about converting the equity to debt - likely very smart. If your home is paid for - for example. Put 50% leverage on it at 150bp's over 1 month libor so 2% interest only. Use the debt to buy high quality equities yielding 3% or better dividends. The dividends essentially pay the mortgage debt and once the underlying once in a lifetime cheap equities come back in 3-5 years, then sell enough to pay off the mortgage debt and pocket the rest to buy more Porsche's. From April 2008 to Jan 1, 2020 the Dow went from 7,500 to just under 30,000 but going from 13,500 to 7,500 was painful. Good times.
03-09-2020, 03:48 PM
#14
I bet a good chunk of GT3 owners who worry about the value this and value that cant sleep now.
I predict the 991.2 GT3s whose value tanked quite a bit already will take a pretty big hit with markets continue to crash. Low 6 figures.
When markets crash, sports cars are first to go.
I predict the 991.2 GT3s whose value tanked quite a bit already will take a pretty big hit with markets continue to crash. Low 6 figures.
When markets crash, sports cars are first to go.
