Quote:
Originally Posted by chadeast
And so much for me hoping to buy yours after said upgrade! Watching whats happened to the 33 Goudey Ruths over the past two months has been pretty amazing, & REA last night felt like the end of my dreams... for now. Big regrets on my part just missing out on two 144s in major auctions in December  In the non-Ruth realm, i was able to fill in quite a few holes in my ‘33 Goudey set last night. |
Awesome card Leon - that batting pose is a classic!
We all know the fed/fiscal stimulus is the main reason for where stocks and cards are valued. Conceptually, it's not about whose getting checks. It's about how the checks are recycled (velocity) back in our economy. Say the $600 is used to pay for groceries or Pokemon cards. That cash is used to support the business selling those goods, who in turn pay the employees to sell those good, who in turn... Stimulus check keep our economy "moving" and bridges us to we normalize (whatever that may be).
More people are employed. At the lower-end, less people are in needs to selling their assets (stocks/cards) to make ends meet, which creates the demand/supply imbalance towards MOAR. At the upper end, that economic activity is supporting the cashflows of our cashflow producing assets, supporting the inflated values of our income producing assets. Until risk assets are valued using an almost risk free rate.... which is not sustainable.
And in a world where there is no alternative (TINA) to stocks because the Fed has pushed us higher in the risk spectrum for yield (as evidence by a 3.5% yield for high yield index!), the marginal difference for yield is not worth it (picking up pennies in front of a steam roller), and more people start looking for alternative places to store their wealth, whether it be art, Gold, Bitcoin or cards. There is no coincidence today that Bitcoin is down ~10% and Gold is up ~2%. People that are running out of Bitcoin are not putting it into stocks, they already predisposed with an alternative mindset for why they are in Bitcoin in the first place. But where did they get this money???
I put an earlier pose, that the Fed increased its balance sheet from 3T in 2013, to 4T in 2018 and not 7.4+T..... so yes, that money is going somewhere.
This is separate from speculation, which is also in our industry and is cause for concern short term, but indifferent long term.
As it relates to the $90K ruth, one sale does not make the market. It sets the price, but only at that time. In times like this, if you can't axe the bid, then value your stuff based on an average of recent sales...