Finance & Fury Podcast

Alternative investments and what they can mean for property and the economy Classical Car Index The CommSec Luxury Vehicles Index lists the following as luxury vehicle makers: Audi, Aston Martin, BMW, Bentley, Ferrari, Hummer, Jaguar, Lamborghini, Lexus, Lotus, Maserati, Maybach, Mercedes-Benz, Morgan, McLaren, Porsche and Rolls Royce Wine index – Liquid assets Art or Luxury Property   Characteristics Almost like an asset backed security - No income, gains come from the increase in price of the good that backs it Capital growth focused rather than income Pretty volatile – Based around demands   Luxury Investment Index Subjective pricing – Good example of ‘elastic’ and ‘inelastic’ demand Imagine Demand supply cure Demand slopes down, supply up Demand – very vertical = Inelastic (remember through I being vertical) Inelastic – necessities, price changes don’t affect demand Elastic – horizontal – responsive to changes in demand, change in price, due to close substitutes Financial crisis – luxury