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Description
What happens when a red-hot market meets a cooling economy? A strong, but more rational market prevails. The market went from irrational exuberance in 2021 to solid, rational demand over the course of this year. This indicates that the market is once again being driven by rational buyers and sellers, as opposed to speculators. For the Fund this should mean the market will focus on the best specimens with pricing expectations following underlying value fundamentals. And while car market gains were a tad more restrained than in previous editions, they represent a healthy correction rather than a dangerous drop. To be clear, prices for most of the market are not dropping, they are merely stabilising. Relative to other asset classes, that is actually good news.