Quote:
Originally Posted by Gorditadogg
As a retired finance professional, I remember the disclosure that went on all our presentations: "Past performance is not a predictor of future results".
Right now we can all feel good that our cards are worth more, but it seems to me that with most investments today, including cards, there is an attitude of easy money, which is dangerous. People are buying stuff just because they see it going up without regard for underlying fundamentals, in many cases without even understanding them.
I would not advise anyone to have 30% of their assets in anything. When you have your net worth tied up in things that appeal to only a small part of the market the risks are even higher than with a mainstream investment.
I've said this before, but one thing I like about the card market today is the prices have pried a lot of nice cards out of old card collectors' hands. I am still buying because of that, but I am concerned about whether in the long term cards will continue to appreciate.
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Sounds like a Chicago Booth graduate.
This surge in prices reminds me of the early 90's when certain wax cases and other "new" material went flying through the roof.
When the "market" prices out the hobbyist, then the only people left are investors/speculators (which sometimes are hobbyist with, as Alan Greenspan said, feelings of irrational exuberance), playing chicken with each other. They're waiting to see who flinches first.
Unfortunately, the hobbyist are usually the ones that get burned worst because they have an emotional attachment. Then it'll be a scramble for the exit to see who gets left holding the goods at the highest price and who was smart enough to get out before the fall.
To those that are "investing". Don't take the above statement as a warning. It's just the rambling of a KNF that likes to stir the pot.
Edited to add - I choose not to look at my cardboard as part of my net worth. It aint worth nuthin unless you sell it.