Same old question, but it is killing me!

[Archive]

Posted By: Jason L

Something to keep in mind:

A truism of Wall Street, that I think can be applied in many other facets of life: Easy Come, Easy Go.

While many people think of that phrase in terms of money won vs. money lost, it is more than that. It also refers to the investment decision making process. A money manager who is quick to buy something (doesn't do alot of research, but instead thinks he understands the investment because it's hot, he wants to keep up with the pack and own the hot stock) will also be the first to bail out when things start to sour, often without ever bothering along the way to learn what is driving the stock's performance, or truly learn about the company. The investment idea came and went quickly. You don't spend much time or energy to learn it in the first place, then you are determined to not be left holding the bag and needing to explain to investors why you made that bet in the first place.

Why do I tell you this?
What the hell is my point?

If there is in fact a new class of "investors" - maybe even corporate funds that are beginning to treat the collectables market as a new asset class, and they are spending stoopid money on reprints, etc...and NOT learning their targets...well, I think it is safe to say that we can expect a market drop.

you watch, if global liquidity begins to dry up, and people become more risk averse, and investors start to pull in the reigns...all of a sudden this will not longer be an asset class, "investment holdings" will be dumped, and those of us with true product knowledge, will know what to buy and prices will afford the opportunity. Because IF this is actually what is happening and we have a new buying class here with deep pockets...and IF there is a financial crisis of any kind...there WILL be alot of people wondering why their money was invested in baseball cards and not GE bonds!

Not saying any of this will happen. I'm just saying that if we have a crunch, uneducated investors will flee, and prices will return to normal.
It is tried and true investor behavior seen time and again.

Weak hands sell into weakness.

And corporate investors (if they exist) will prove to be weak hands.



Edited for spelling and to say that while I am not an elite financial mover-and-shaker, I have as yet not seen any research material, advertisements, articles, findings, asset allocation models, or anecdotal evidence at all to suggest that the hobby is becoming a new asset class target, so if anyone has seen anything, please forward it on, or post it...because it will be great to see what is happening here...the early days of any new frontier are never that well publicized, but once things triclke out to the press, it could make for interesting reading.