Rich folks like cars
Well, it’s official now. Rich people – or “high net worth individuals” (HNWI) in the parlance of the investment industry that caters to them – like to spend money on “investments of passion,” such as cars, boats, and airplanes, which are categorized as “luxury collectibles.“
This bit of seemingly self-evident wisdom is furnished, courtesy of Merrill Lynch, the stock brokerage firm, in its 2007 World Wealth Report. But the Report gets down to numbers. 26% of large recreational expenditures by HNWIs in 2006 went to cars, boats, and planes. Art came in second at 20%.
But it’s not all clover for the very rich.
The CLEW index – the “cost of living well,” that is – has been rising twice as rapidly as the basic Consumer Price index. CLEW was up 7% last year.
So getting that Rolls now may turn out to really be a bargain.
Source: The Auto Channel