Wolf Richter writes …..The global asset class of collector cars – these beautiful machines are perhaps one of the most enjoyable asset classes to play in – is quietly but persistently and very unenjoyably experiencing a downturn that parallels and in some aspects already exceeds the one during the Financial Crisis.
The index for collector car prices in the May report by Hagerty, which specializes in insuring vintage automobiles, fell 0.68 points to 160.06, down nearly 10% year-over-year, and down 14%, or 25.8 points, from its all-time high in September 2015 (185.86).
The index is now at the lowest level since June 2014. “With the latest release of values in the Hagerty Price Guide, prices have started to normalize,” the Hagerty report commented.
This is how an asset bubble during these crazy times of easy money around the globe, central bank “wealth effect,” and endless liquidity gets unwound.