Alas, No DUSY

After the last bubble ate their 401(k)s, it seems that quite a few people deserted the stock market and started speculating in old cars. I say old cars instead of classic cars, because in the process of creating yet another bubble the definition of classic became, shall we say, broader. Pretty much any piece of junk that had wheels, or had wheels at some point in the past, became classic. But the buyers loved them – shiny, you know – and felt they understood the values much better than those of the pieces of companies whose names they barely knew.

In addition to the consequent elasticity of supply, old cars earn no income and their value is only what someone will pay for them. A pure speculation, like gold, of course, with the only real utility being conspicuous display. There are funds that speculate in cars, but so far I have not seen any ETFs.

Alas, this bubble is now popping. Entirely predictable, of course. I am a little disappointed that now the time has passed and the DUSY ETF may never appear. I confess I like old cars as much as the next guy, although I don’t own any nor plan to I do follow an auction site “Bring A Trailer.” It is amazing that the conviction remains that it is essential to buy cars “before the price moves out of sight,” even though the same cars frequently re-appear on the site at prices lower than their previous sales.

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