Re: ARE ELANS UNDER VALUED?
Posted: Mon Apr 03, 2017 7:05 pm
persiflage wrote:Personally I think the worlds gone mad . . .again.
I am with you on this one...
I blame the banks! In days gone by if you had a decent sum of money you'd built up over your life you'd stick it in a bank earning a reliable decent % return. These days its pretty difficult to get an account that pays any thing like a decent return. If you find something that beats inflation you've done extremely well. In most cases you're losing money (buying power wise) with money in the bank due to inflation being much higher than interest rates.
So people take their money and try to find other things they can do to get a better return. Common examples of this are stocks and property. Both of these are doing pretty well despite the craziness going on at the minute. Classic cars are just another place to put your money in the hope of them increasing in value and well at least you get something you can enjoy.
Stocks, property and classic cars all have a look of a bubble but I am not sure what could cause it to burst. The banks aren't suddenly going to start pay a decent exchange rate, as they learned they don't have to.