Sunday Nov 28 2010
Popular Culture and Social Mood
Mark McCormack (the original sports rep, he signed Arnold Palmer and went on to form Intl Management Group) relates that he was having lunch with the CEO of Rolex Europe. Someone came to the table and inquired 'how is the watch business?'
The CEO replied that he had not idea how the watch business washis correct perception, of course, was that he was not in the watch business, he was in the business of offering jewelry that made a statement about its owner.
Like one off dresses for the Academy Awards, cost is no object where exclusivity is the end desire.
The WSJ is chock a block full of ads for expensive mechanical watches, which in terms of function are more or less obsolete in terms of time keeping accuracy, but my point is….
These mechanical watches are retro, a throwback, a statement like a fountain pen in a world of ballpoint pens, I have not heard of most of the brands but perhaps that adds to the allure. We are at the top of a Wave Two in the markets, politicians assure that all is well, but the charts in this issue speak otherwise. This belief will be shattered by the end of 2011The improvement in social mood has brought a return to fascination with luxury objects. This was also the case in the Depression as many 1920 luxury items finally went out of business.
From Wikipedia
Employing imaginative designers such as Alan Leamy (who was chiefly responsible for the 1933 Speedster)[1] and Gordon Buehrig (who modified leftover bodies to produce the 1935 851 Speedster, and facelifted the four-door),[2] Cord built cars that became famous for their advanced engineering as well as their striking appearance, e.g., the 1928 Auburn Boattail Speedster, the Model J Duesenbergs, the 1935–1937 Auburn Speedsters and the 810/812 Cords.
Styling and engineering failed to overcome the fact that Cord's vehicles were too expensive for the Depression-era market and that Cord's stock manipulations would force him to give up control of his car companies. Under injunction from the U.S. Securities and Exchange Commission to refrain from further violations, Cord sold his shares in his automobile holding company. In 1937, production of Auburns, Cords and Duesenbergs ended.
Auburn Cord Duesenberg has its echo in the expensive cars and watches of today. It is interesting that Cord finally succumbed during the second bear market beginning in 1937.
Aston Martin just debuted a new $200,000 car, the Rapide. The firm is now owned by a Dubai Group of Investors. Dubai is another mecca for unoccupied real estate.
Lulu Frost fashions antiques into desirables. Here is an article featuring the ‘must have’ attributes of a new jewelry line crafted from antiques.
Two original volumes are expected to bring record prices at auction.
Twin Peaks, Audubon and Shakespeare Original Volumes
In an interesting cross promotion, a Breitling signature clock is featured in Bentley automobiles. Going themselves one better, Breitling has introduced the ‘Limited Edition Bentley Supersports watch. The decline in markets by Christmas 2011 should be such that people will not be flaunting wealth but hoping to hold on to it.
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