Viper only go up in value

[Lawineer]

The best deals I ever got were on big block Corvettes in 1972-3 during that gas shortage. Those cars went on to fetch huge prices, but 30 years later. I just spent over $500 on diesel to trailer my ACR from AZ to Nevada on its annual trek for a Nevada smog check (Nevada registration). I have done that 4 times to keep the 800+ miles per round trip off the Viper. Wonder what the dollar trade-off turns out to be - reduced Viper depreciation or fuel costs? LOL

Pappy

I just checked and I'm 70% cash. Not because I'm smart or savvy, but because I'm financially lazy/moron, but hey, I might be failing straight into success this time around. But if there is a crash, I'll probably just buy a whole bunch of cars I've always wanted like GT3RS and F430 rather than actually taking advantage of the situation :lol:

[Scott_in_fl]

ha, i wonder if that's the last new ACR on a showroom?




We'll see how deep it goes, but for now it's mostly only affecting lower income folks. Luxury goods seem to be holding up well, but as we go deeper into recession it could affect more and more.

The depth of reach into upper income levels is proportional to how significant/long a recession is. At some point, everyone begins to trim holdings. That said, this recession is mainly made up of two components -- interest rates rising and supplies becoming less available. The interest rate issue is easily adjusted, the supply issue not so much. If the Fed needs to lower to spark demand, it always can/will. For now, demand could use some chilling. It was out of hand. Supply will come back online and has already begun to do so.

LVMHF stock is down -28% in the last 6 months, despite excellent sales and profits in 2021. Not sure 2022 will be that good for luxury goods....

I'm not so certain that LVMHF is the best canary in the coal mine for what we're discussing. The line outside the stores in our area (South Florida) for LV, Gucci, et al. are not what I would consider to be folks that look like they are going back to a $10m home at night. Let's also keep in mind that buying a $1,500 purse, or a $500 belt is not akin to purchasing $500k cars. If you want to gauge the ability of the wealthy car collector types to continue to stock their garages, then you should look at auction prices for things like high end art/jewelry/homes ($5m+). That's the buyer that you want to keep an eye on.

[Scott_in_fl]

ha, i wonder if that's the last new ACR on a showroom?




We'll see how deep it goes, but for now it's mostly only affecting lower income folks. Luxury goods seem to be holding up well, but as we go deeper into recession it could affect more and more.

I just checked and I'm 70% cash. Not because I'm smart or savvy, but because I'm financially lazy/moron, but hey, I might be failing straight into success this time around. But if there is a crash, I'll probably just buy a whole bunch of cars I've always wanted like GT3RS and F430 rather than actually taking advantage of the situation :lol:

A 488 Pista would be on my list.

[Aevus]

I'm not so certain that LVMHF is the best canary in the coal mine for what we're discussing. The line outside the stores in our area (South Florida) for LV, Gucci, et al. are not what I would consider to be folks that look like they are going back to a $10m home at night.

LVMHF is very diversified, bags, clothes, wine and even yachts...

LVMH Moët Hennessy - Louis Vuitton, Société Européenne operates as a luxury goods company worldwide. The company offers champagnes, wines, and spirits under the Clos des Lambrays, Château d'Yquem, Dom Pérignon, Ruinart, Moët & Chandon, Hennessy, Veuve Clicquot, Ardbeg, Château Cheval Blanc, Glenmorangie, Krug, Mercier, Chandon, Cape Mentelle, Newton Vineyard, Cloudy Bay, Belvedere, Terrazas de los Andes, Bodega Numanthia, Cheval des Andes, Woodinville, Ao Yun, Clos19, and Volcan de mi Tierra brands. It also provides fashion and leather products under the Berluti, Celine, Christian Dior, Emilio Pucci, FENDI, Givenchy, Kenzo, Loewe, Loro Piana, Louis Vuitton, Marc Jacobs, Moynat, Patou, and RIMOWA brands. In addition, the company offers perfumes and cosmetics under the Acqua di Parma, Benefit Cosmetics, Cha Ling, Fenty Beauty by Rihanna, Fresh, Givenchy Parfums, Guerlain, KVD Beauty, Kenzo Parfums, Maison Francis Kurkdjian, Make Up For Ever, Marc Jacobs Beauty, Officine Universelle Buly, Parfums Christian Dior, and Perfumes Loewe brands; watches and jewelry under the Bulgari, Chaumet, Fred, Hublot, Repossi, TAG Heuer, Tiffany & Co., and Zenith brands; and custom-designed yachts under the Feadship brand name, as well as designs and builds luxury yachts under the Royal Van Lent brand. Further, it provides daily newspapers under the Les Échos brand; Belmond, a luxury tourism service; home other activities under the Belmond, Cheval Blanc, Connaissance des Arts, Cova, Investir, Jardin d'Acclimatation, La Samaritaine, Le Parisien, and Radio Classique brands; and selective retailing products under the DFS, La Grande Epicerie de Paris, Le Bon Marché Rive Gauche, Sephora, and Starboard Cruise Services brands, as well as operates Jardin d'Acclimatation, a leisure and amusement park. The company operates 5,556 stores. LVMH Moët Hennessy - Louis Vuitton, Société Européenne was incorporated in 1923 and is headquartered in Paris, France.

[Lawineer]

A 488 Pista would be on my list.

I've always wanted a 430. It was the first Ferrari I drooled over in high school.

[Aevus]

The depth of reach into upper income levels is proportional to how significant/long a recession is. At some point, everyone begins to trim holdings. That said, this recession is mainly made up of two components

To my eyes, it looks like a perfect storm...

Dow Jones and NASDAQ going back to march 2020 levels, or at least pre-pandemic levels, it's certainly possible. At least temporary.

I'm almost all cash now, except a bunch of reverse ETF's just for fun of making few bucks out of that storm.

[Viperenvy]

My go to vehicle for peak explosion. May not be the best example but 7 years later. Many of you can probably help me understand why.

1986 911 Turbo.jpg

[Aevus]

COST down -29% in a month... TGT down almost -30% in only 2 days...

That's enough to raise some serious questions.

[Lawineer]

COST down -29% in a month... TGT down almost -30% in only 2 days...

That's enough to raise some serious questions.

I got out of AMZN at 3250 or so. It's at 2100.

(unfortunately, I used that money to buy ETH :lol: )

But any company that has a lot of cash on hand will do well. They'll gobble up competition for pennies on the dollar or expand their own.

These 13 companies have over $1T in cash.
https://www.investors.com/etfs-and-f...stors-want-it/

[Aevus]

These 13 companies have over $1T in cash.
https://www.investors.com/etfs-and-f...stors-want-it/

Many of my favorites in that list. Just a bit too expensive right now...
But GOOG, FB, AAPL, AMZN, MSFT... despite being considered ''boring'' by some, are all very solid long-term investments. Will sure buy any of them when the P/E goes below 11 or 12 (30-ish for AMZN)

[Ronin47]

They should drop like rocks any time now...

That's in Zimbabwe currency lol.

[Old School]

That's in Zimbabwe currency lol.

one-hundred-trillion-dollar-bill-from-zimbabwe-hyperinflation-on-a-hilarious-level-484576.jpg

[TheMadMachinist]

one-hundred-trillion-dollar-bill-from-zimbabwe-hyperinflation-on-a-hilarious-level-484576.jpg

Almost seems as if we are heading in this direction.lol

I picked a hell of a time to retire.

[Policy Limits]

When you Flip your ACR for the value of a house you can have your own currency like Eddiieeee...

[Gen5snake]

Many of my favorites in that list. Just a bit too expensive right now...
But GOOG, FB, AAPL, AMZN, MSFT... despite being considered ''boring'' by some, are all very solid long-term investments. Will sure buy any of them when the P/E goes below 11 or 12 (30-ish for AMZN)

No worries. Google and Amazon set for a 20 to 1 split. I believe Amazon is in June and Google in july

[Lawineer]

No worries. Google and Amazon set for a 20 to 1 split. I believe Amazon is in June and Google in july

A split literally adds no value to the company/stock. Literally- it can be mathematically proven.

It’s like selling gas by the quarts instead of gallons and getting all excited because the signs at the station say $1.xx instead of $4.xx. (Which, don’t put it past this administration to do that)

[ViperGeorge]

A split literally adds no value to the company/stock. Literally- it can be mathematically proven.

It’s like selling gas by the quarts instead of gallons and getting all excited because the signs at the station say $1.xx instead of $4.xx. (Which, don’t put it past this administration to do that)

While you are certainly correct that the value of the company/stock does not mathematically change immediately after a split there is a psychological impact as well as a practical one. A lower stock price enables additional investors to buy a stock which before the split may have been out of their price range. In addition there is a psychological effect whereby investors tend to think the stock got cheaper and is now a better buy. Both of these things can cause increased demand for the stock and the price rises as a result.

When I worked at AIG in the 90s it was a well proved strategy to split the stock every two years. After the split the stock would rise until in two years it was time to split it again. Had they not done this I believe the stock would have still gone up just not at the same pace.

[Policy Limits]

Them 60/40 guys have fingers crossed with respect to the bond side now. Ha.

Save this post to determine if it ages well or not: SE ACR-E cars will have seven figure value. Flame suit, on. Lol

[Lawineer]

While you are certainly correct that the value of the company/stock does not mathematically change immediately after a split there is a psychological impact as well as a practical one. A lower stock price enables additional investors to buy a stock which before the split may have been out of their price range. In addition there is a psychological effect whereby investors tend to think the stock got cheaper and is now a better buy. Both of these things can cause increased demand for the stock and the price rises as a result.

When I worked at AIG in the 90s it was a well proved strategy to split the stock every two years. After the split the stock would rise until in two years it was time to split it again. Had they not done this I believe the stock would have still gone up just not at the same pace.

It's a short term surge, but that's just a tax on the statistically inept. Plus, you can buy fractional shares easily now. Up till recently I was reinvesting all my dividends, so pretty much everything I have from individual stocks to index funds have fractional shares.

[Policy Limits]

Psshh. I get 12% annual pre-judgment interest on every single claim. It is retroactive to the date of loss So often times a Verdict is double the award. Just a tad better than the market lol

[Lawineer]

Psshh. I get 12% annual pre-judgment interest on every single claim. It is retroactive to the date of loss So often times a Verdict is double the award. Just a tad better than the market lol

cool but what does that have to do with anything.

[Gen5snake]

I don't think the issue was about adding value, it was about affordability. If it split today, he can buy a share of Amazon at $107 instead of laying out $2151 for one share. Maybe he didn't want to spend $2151 to get in the game. And everything that ViperGeorge said.

[Policy Limits]

cool but what does that have to do with anything.

I guess my point is viper value threads tend to end up with lots of investment expertise, lol soon the experts will be rockin hyper cars & will peace out of a dodge forum. .....

[Lawineer]

I don't think the issue was about adding value, it was about affordability. If it split today, he can buy a share of Amazon at $107 instead of laying out $2151 for one share. Maybe he didn't want to spend $2151 to get in the game. And everything that ViperGeorge said.

Yeah, but you can buy 1/4 of a share and it's all the same.

People who can't afford 1 share of a company aren't moving the market in any meaningful way.

[ViperSRT]

Yeah, but you can buy 1/4 of a share and it's all the same.

People who can't afford 1 share of a company aren't moving the market in any meaningful way.

Not sure that is true for all. My ML account does not allow purchases of shares with decimals. Only full shares. Yes, dividend reinvestment can be in partials, but not purchases. This effectively keeps investors out of high dollar stocks and ETFs. And they may seem like minions, but the numbers of those investors can impact the market.

BTW try to purchase a portion of a share of Berkshire Hathaway. Their share price keeps out pretty much most of us commoners.