I went to college in the 1980s. Even though the decade was market by a lust for cash, which led to lavish lifestyles, big hair, and the cocaine wars, one of the television heroes of the day was usually broke.
Thomas Magnum (Tom Selleck), was a private investigator and beach bum. While he personally didn’t own any toys of the rich and famous, he was a permanent guest of the fabulously wealthy Robin Masters. As such, Magnum had access to everything, including the coolest car of the day – a red Ferrari 308 GTS.
Because of the popularity of the show, that car is one of the most recognizable vehicles in history, and it still turns the head of every guy near my age. (For a bit of trivia on that car, read the P.S.)
The world appetite for Ferraris has waxed and waned over the years, but the boost the company received from that show never faded. The car remains a singular status symbol.
Recently the company went public, cashing in on its fame. Unfortunately for investors who bought the shares…
…the offering came right as the biggest potential market is turning down. Coupled with another development, this clouds Ferrari’s future, but it bodes well for another iconic product.
There’s no question that the Chinese economy is slowing. Last quarter, GDP growth fell below 7% for the first time since the financial crisis. Unlike back then, there’s no crisis today. Instead, world demand is simply trailing off without any expectation of a quick bounce back.
Chinese exports fell 9% in July, and 5.5% in August. That’s tough. But what’s more telling is that imports were off more than 13% in August, pointing to a slowdown in both the manufacturing of exports and domestic demand. Unfortunately for businessmen and government officials, financial pressure isn’t the only problem they face.
Chinese President Xi Jinping made rooting out corruption a top goal of his tenure. He has removed several top party officials from their posts and put them on trial, which is just a formality. I’ve yet to hear of any Chinese official charged with corruption who emerged victorious from the court system. To avoid unwanted scrutiny from regulators, people of all stripes are avoiding flashy displays of wealth, like Ferraris.
Leave A Comment