HAGI FERRARI INDEX

If Ferraris had tow hitches the rest of the market would be attached by a bungee cord. On the ascent the elastic stretches like a catapult. As the terrain levels out, the umbilical cord shrinks to relieve the tension. And on the downhill sections Ferrari stretches out again. History proves it.

You don’t want to read much into Ferrari’s marginal 0.44% uptick in July; it barely amounts to a bear market rally, and is nothing like the ‘traditional’ seasonal positioning that once triggered bull market buying in advance of the major US auctions in August.

In fact, with four successive downward corrections from March through June, the HAGI F Ferrari Index has declined 7% from the February peak to an index level of 329.44. In the year to date it’s down 4.12%, which in deficit terms places Ferrari in the lead among HAGI indices.

More striking is that after a decade that in many years has seen remarkable annual compound growth, the HAGI F is the only index that is now down year-on-year. Ferrari’s year-on-year deficit is 2.67%, while at the other end of the scale the HAGI P Porsche index is up 9.26% over the same period.

But for all that, the legacy of accelerated growth in the recent past is that HAGI F is still trading 20.15% up compared with three years ago, which will be a comfort for those who engage with their enjoyment over the longer term.

The discerning enthusiast buyer is today in the driver’s seat, a great vantage point from which to keep an eye on the stretch of the bungee cord… For further analysis, visit historicautogroup.com.