Bursting Bubble

[joshuanip]

Originally Posted by moogpowell

Impossible to ascertain magnitude and timing of any selloff but I think HOF baseball players from 1950s to 1970s roughly graded PSA 6 to 8 offer a healthy risk/reward regardless of market conditions. Sort of equivalent to large-cap value with a 2.5% to 3% dividend yield. You won’t get make a lot fast but downside seems limited.

They are absolutely different. The former, regardless prewar or postwar high grade vintage are non income producing alternative assets. They are also illiquid assets, unique in each example similar to real property.

The latter are income producing assets that carry a risk premium (cards cant default or cut your divy) and are based on discounted cashflows of that stock (whether to use the dividend discount model or discounted free cashflow yield remains to be seen). Liquidity is much better as transaction costs are minimal and there is a open marketplace that provides daily liquidity. Also, those stocks are dictated by passive ETF investing and are subject to flow.

I think what you mean is that those investment grade cards are better investments, which I agree, due to the fact that there will always be higher liquidity and demand for that type... but not the same as large cap stocks.