Sneakers Outpace The Stock Market

Sneakers Outpace The Stock Market

almost 4 years ago2 mins

Mentioned in story

The $2 billion sneaker resale market has fallen on tough times as the economic effects of coronavirus leave consumers more strapped than a pair of Reeboks. But truly fresh kicks are still outpacing the stock market... 👟

What does this mean?

High-end sneakers – the vast majority of them made by Nike – can command thousands of dollars on the secondary market. That’s not down to diamonds on the soles, mind you: some are simply stylish, in-demand designs, while others may be super scarce. As our Weird & Wacky Investments Pack posits, that can translate into rising values over time.

But some sneaker investors are now on the back foot. According to specialist resale platforms, 60% of the most popular shoes have seen prices fall in recent weeks, with a pair of Off-White x Air Jordan 5s – one of the biggest releases of 2020 – now commanding less than half what they did in late February.

Article Image

Coronavirus uncertainty may be making buyers warier of big purchases – and sellers more willing to part with their prized pumps for less. Still, with some ecommerce operations now shuttered and several major sneaker drops getting postponed – including six Air Jordans – there’s a risk “liquidity” issues will send prices swinging more wildly in future 😿

Why should I care?

The secondary market for sneakers isn’t the only one close to running on empty. Private equity could soon be in for a shock as less appetite for debt leaves unlisted company shares potentially worth a lot less than their owners claim.

Man Group points out that the value of publicly-listed private loan funds has fallen dramatically
Man Group points out that the value of publicly-listed private loan funds has fallen dramatically

Still, sneakers – especially truly rare marques with a “timeless appeal” to collectors – may be a better bet than shares after all. Marketplace StockX saw the value of its entire inventory decline 4% in March, while US stocks fell 15%. And at $640, the Off-White x Air Jordan 5s are still selling for three times what they initially retailed for two months ago… 😮

Finimize

BECOME A SMARTER INVESTOR

All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

Finimize
© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG