In a situation known as a “bear market,” widespread pessimism has negative consequences on prices and securities, yet the market still functions. The trend also needs to last longer than two months to be able to gain the aforementioned title, which was most recently applies to the American classic car scene, and in particular domestic classics from the finned and rocket-inspired 1950s (exemplified in the video below).
It seems this is being driven by a loss of interest in these cars, fueled by an influx of very cool motors from abroad.
CNN Money reports that while Ferrari, Mercedes and other aristocratic brands that made cars in the same time frame are seeing their classics appreciate in value considerably in recent years, selling for tens of millions of dollars, American classics from the age aren’t, even if they are called something cool like Studebaker, Packard or even Tucker.
The source article quotes Rob Sass of Hagerty Insurance, who is a specialist in the field of old classics’ insurance. He noted that according to their prices index for 50s American classics, these were highest in August of 2007, having constantly been dropping since.
So the advice here could be to start buying more classic American and getting the sector and demand back up, but running the risk of losing money (or not really making any) or just going with the current trend and trying to make money off of old Euro cars.
By Andrei Nedelea
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