Investors in classic cars such as Ferraris and Porsches have earned strong returns when compared with putting faith in many equity
markets but latest data showed that the sector went into reverse gear in
October.

The Historic Automobile Group’s indices of transactions
showed that in the year to October, its HAGI Top index, its overall measure,
rose 18.31 per cent, but fell by 0.43 per cent from September. Even so,
performance over 12 months to October remains strong, with a gain of 18.26 per
cent, ahead of the S&P Global 1200 index of shares, up 10.86 per cent.

Certain marques of car have continued to put in a fast
performance: the HAGI F index, measuring prices fetched for Ferraris, for
example, is up 29.77 per cent between January this year and October; the HAGI P
index for Porsche cars is up 14.79 per cent for the year so far.

Interest in such “real assets” has grown at a time when the
appeal of some mainstream assets, such as bonds, cash and equities, has
suffered since the 2008 financial crisis and due to concerns about inflation. However,
unlike stocks, investing in cars and other collectables is typically less
liquid and can require higher fees and levels of expertise from the investor.