This is a very interesting article on investing. Julia Werdigier with the International Herald Tribune investigates the new moving trends of investments.
“As investors range far afield in search of places to put their money, hedge funds have expanded investments beyond stocks and bonds into art, wine, rare stamps and even soccer players.
Money managers have begun to look at these so-called “exotic assets” as a way to diversify risk while searching for assets that may provide a cushion if the five-year market boom comes to an end.”
And of course the critics have their say in that these investments are risky and opaque. She also talks about the inflow of new wealth from developing countries like China and Russia and how they will drive up demand on the exotic assets.
“There’s a new wealth that will not go away, and that means for luxury cars, watches and wine, there will always be demand,” said Stephen Decani, a partner at Arch Financial Products, a London firm that runs a fund investing in Bordeaux wines, which are among the most expensive and exclusive.
To catch more on information on the returns and risks of exotic assets read on:
Bored with hedge funds? More investors are turning to ‘exotic assets’
Maybe car clubs like DFW Elite Car Club will be the next investment managers for the exotic car investments. They will definitely know the the resale market numbers.