I was on the verge of buying a CD 28 powerboat. Went to a cocktail party brimming with brokers and bankers, all of whom predicted that the market would continue to erode.Assuming they are correct, how does that affect the price of used Cape Dories? I would imagine it would kill new boat sales but does it drive down the interest and, therefore, price of used boats as well? Or do the classics hold their value? Or do people simply sit on their boat until the market goes back up and then sell it? Anyone with a perspective on this?
hoe_o'neill@mvbms.com
The Stock Market and CD Powerboats
Moderator: Jim Walsh
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Mike Everett
Re: The Stock Market and CD Powerboats
I don't have any perspective on this, would it would make a great project for a student of finance.
It would be a straightforward matter to correlate the average price of CD powerboats against a market index.
I wonder if anyone has ever done this with yachts generally.
Maybe Dow-Jones will publish a "soundings index" some day.
everett@megalink.net
It would be a straightforward matter to correlate the average price of CD powerboats against a market index.
I wonder if anyone has ever done this with yachts generally.
Maybe Dow-Jones will publish a "soundings index" some day.
everett@megalink.net
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Matt Cawthorne
Re: The Stock Market and CD Powerboats
Joe,
Do not think of boats as money making investments. You will loose money. That is a given, it is just a matter of how much. Here is a way of thinking about it even if the value of the boat follows the stock market.
If you intend to keep the boat for a long time then it does not matter. The stock market will go up and down many times in that period. If you intend to upgrade in a few years and the stock market goes down, then you will be better able to afford the upgrade, because the price of your upgrade boat will be lower (unless you are buying new). If you wait and the stock market (and the price of the boat) go up then you might not even be able to afford the boat you are about to buy. If you intend to sell in a few years and not buy another boat then you might as well just charter.
If this all sounds like good logic then think again. Buying a boat is not logical. Buying a boat is an action that comes from the heart, not the head. Life is short and money is just green paper.
Matt
mcawthor@bellatlantic.net
Do not think of boats as money making investments. You will loose money. That is a given, it is just a matter of how much. Here is a way of thinking about it even if the value of the boat follows the stock market.
If you intend to keep the boat for a long time then it does not matter. The stock market will go up and down many times in that period. If you intend to upgrade in a few years and the stock market goes down, then you will be better able to afford the upgrade, because the price of your upgrade boat will be lower (unless you are buying new). If you wait and the stock market (and the price of the boat) go up then you might not even be able to afford the boat you are about to buy. If you intend to sell in a few years and not buy another boat then you might as well just charter.
If this all sounds like good logic then think again. Buying a boat is not logical. Buying a boat is an action that comes from the heart, not the head. Life is short and money is just green paper.
Matt
Joe O'Neill wrote: I was on the verge of buying a CD 28 powerboat. Went to a cocktail party brimming with brokers and bankers, all of whom predicted that the market would continue to erode.Assuming they are correct, how does that affect the price of used Cape Dories? I would imagine it would kill new boat sales but does it drive down the interest and, therefore, price of used boats as well? Or do the classics hold their value? Or do people simply sit on their boat until the market goes back up and then sell it? Anyone with a perspective on this?
mcawthor@bellatlantic.net
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Don S.
Re: The Stock Market and CD Powerboats
Joe:
A boat is the best place to be while contemplating the market's whims.
don@cliggott.com
A boat is the best place to be while contemplating the market's whims.
Joe O'Neill wrote: I was on the verge of buying a CD 28 powerboat. Went to a cocktail party brimming with brokers and bankers, all of whom predicted that the market would continue to erode.Assuming they are correct, how does that affect the price of used Cape Dories? I would imagine it would kill new boat sales but does it drive down the interest and, therefore, price of used boats as well? Or do the classics hold their value? Or do people simply sit on their boat until the market goes back up and then sell it? Anyone with a perspective on this?
don@cliggott.com