Art Newspaper. “Inflation … What It Means For the Art Market. ” James Goodwin. May 2021.

Today, we are more aligned with

the conditions in 2014 than the ‘90s. Obviously, some areas of the market will drop. Others will remain static. But ultimately, we are in a very different place to the late '80s and early '90s. 13,14

First and foremost, the ecosystem of car collectors has grown much bigger and more diverse over the decades. These people vastly outnumber the speculators who will dump their cars the moment the returns don’t make sense on a spreadsheet. The number of resources (Facebook groups, events, social media, cars and coffee, etc) are unimaginable compared to decades ago. Collectors are more knowledgeable now – thanks to YouTube heroes – than ever before. 14

Technology has also transformed

how and where we transact on vehicles. Historically, among tangible assets, cars were considered tougher to move than other collectibles (like art). But now with the growing acceptance of online transactions and auctions, there’s much more liquidity and transparency on the value of vehicles. So long as a buyer isn’t in a firesale situation, these channels permit a more knowledgeable exchange of information and negotiation. 14 They also mean collectors who need some liquidity have the ability to sell other investments before they have to sell their prized vehicle position. Afterall, although cars are easier to unload vs a house, investors now have control of selling other possessions (from watches, to art, to sneakers, to stocks in their trading portfolio) across multiple platforms for liquidity. Back in the 1990s even standard stock investments had to be managed by a stockbroker and sold following an exchange of letters. Today, all of these can be cashed out through an app and back in your bank within hours. But maybe even more reassuring for the Fund, is that we have actively avoided purchasing vehicles that were caught up in the frenzy and only target(ed) cars that were supported by underlying valuation fundamentals. Our vehicles provide an opportunity for value creation and preservation during this inflationary period and in the long-term. Further, we need to recognise that new supply for Fund cars have ceased due to external forces. It isn't a temporary shortage like the recent influences on the commuter market. It is a permanent termination to production of Fund cars. All these factors considered, the market for vehicles of distinction will endure (and industry trends support this).

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