Only one item is up for auction, a 1955 Mercedes-Benz 300 SLR Uhlenhaut Coupe, which is considered to be “‘the most beautiful car in the world’ by automotive experts and enthusiasts worldwide.” As the auction begins, your heart begins to pound, you ready yourself to make your best and highest offer to take home “one of the great jewels of motoring history.” The bid opens at ~ $50 million and you quickly raise your number. The bid jumps quickly to $55 million, then $60 million. You jump back in and raise your number at $75 million, knowing if bids go any higher, the “jewel” will slip through your fingertips.
The bid continues. As it exceeds $100 million, you find yourself asking, “Who can pay over $100 million for a car?” Twenty minutes later, the auctioneer smashes his gavel against the table and yells, “Sold to you sir!”
The 1955 Mercedes-Benz 300 SLR Uhlenhaut Coupe sold for $143 million to a private owner, making it the most expensive car known to ever have been sold. Although $143 million is a lot of money, especially for a car, how about ~$8 trillion plus?
The financial markets experience an auction daily, as buyers and sellers trade positions. Buyers raise their “number,” the auctioneer slams his gavel and assets trade “hands.” Over the past 15 years, there has been a “private buyer” in the marketplace raising their number. Only it isn’t a wealthy car collector, the private buyer has been the Fed. Their pockets are full of liquidity, which is unrivaled by any individual or entity on the planet. Due to this, the Fed has created a mirage in the marketplace by throwing their weight around and bidding up prices in real time. Unfortunately, this has made it difficult for the everyday investor to gauge the true value of assets in the marketplace.
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Investment Advisor Representative
LeConte Wealth Management