HAGI FERRARI INDEX

EVER SINCE IT PEAKED at 361.1 at the end of September, the HAGI Ferrari index has fallen back slightly in each of the three successive months to post a quarter-onquarter decline of 1.92% and stand at 354.16 at the end of November.

It’s a scenario that’s broadly commensurate with other sectors of the market, most of which also peaked in the third quarter and have since fallen away somewhat. The trend towards convergence is demonstrated by the close alignment of index levels among the HAGI Top overall investment-grade market measure, the HAGI Porsche and HAGI Ferrari indices, with no meaningful separation between them in the ten years since the inception in 2008.

While in strong growth years through to 2015 there were dramatic variations in performance, and thus the short gains offered by various marques, this would no longer appear to be the case.

In the case of Ferrari specifically, its current index level pitches it exactly where it was in (firstly) September 2017, and then further back in the February of that year. Again, this is broadly commensurate with other sectors as well as a clear indicator of the overall sideways trend over the past two years.

Put simply, those market investors who used to favour one marque over another on the basis of the potential short-term gains need no longer be constrained by such blinkered considerations. Another way to put it is that speculators are no longer in the game. Today the buyer in the driving seat is a value-investor who weighs up not only the pricing but also the fundamentals of the asset; in other words the informed enthusiast with the knowledge to align price and quality in order to arrive at a judgement of value rather than a blind investor.

See www.historicautogroup.com for more.

Dave Selby