Cover of MoneyWeek magazine issue no 510

Put your money to work

29 October 2010 / Issue 510

The best bets for income

PLUS:

  • Is the US facing another property crisis?
  • How to get Britain growing again
  • The rise and fall of Bob Guccione

Excerpt

Why I’m stockpiling chocolate

I saw CLSA’s Russell Napier this week. He told me the new Ferrari SA Aperta Roadster is sold out. You might find that more irritating than interesting, given they cost about $450,000.

But, while the car is super exclusive, that it’s been snapped up so fast might point to something serious. Add it to the $12.3m spent on ex-Lehman Brothers’ art at auction last month; the continuing rise in luxury handbag sales (sales of luxury goods via shops owned by the luxury brands are up 20% so far this year due to a rebound in the US); and the fact that a Damien Hirst piece (The True Artist Helps the World by Revealing Mystic Truths) from 2006 sold for £3.5m, mere minutes after this year’s Frieze Art Fair opened its doors this month; and it might, just might, suggest that the very well off are losing faith in the value of holding cash.

For the last two years we’ve worried about deflation. But we now suspect that, due to collapsing currencies and quantitative easing, it won’t be back for a while.

• Read the full editor’s letter here:
Why I’m stockpiling chocolate