By David A. FahrentholdThe Federal Reserve Bank of San Francisco recently warned that stocks of high-end fishing gear, including trawlers and fishing boats, were undervalued because they were being bought at high prices.
A recent report by Bloomberg found that fishing gear sales jumped nearly 50% last year, a sign that investors were buying more gear.
The market for fishing gear is a bit like a stock market bubble, experts say, and the potential for a major selloff could drive prices higher.
“Fishermen are making money,” said Mark Krikorian, a professor of management at Northwestern University who studies the stock market.
“It’s just a question of how much they make, and what kind of return they get.”
A fisherman’s livelihood is at stakeA fisherman in Oregon recently sold his trawler for $2 million.
But if the price is right, it could take many years before the stock markets recover, said Chris Sargent, who heads the investment research firm KKR in Washington, D.C. Fishing gear is being bought for a lot of money, Sargents said.
And if the prices aren’t right, there is the possibility that the gear could be worth more in a few years than the people who bought it paid for it.
If a fishing gear bubble burst, it would likely be followed by a similar collapse in other sectors, including the real estate market.
The real estate bubble that popped in 2007, then collapsed in 2008, and then popped again in 2009, has been a big contributor to the stock bubble.
The housing bubble burst and crashed the economy, sending millions of Americans into homelessness, Sargeant said.
But if there is a fishing bubble, it will not be the same.
There are a lot more fishermen than there are houses, he said.
The bubble will not burst until stocks return to a sustainable level, Sorgents said, adding that the financial sector has been very vulnerable to the financial crisis.
In the end, the most important thing is that you get an educated investor in there, said Sargethan.
“They are going to come in and buy and sell in order to make money.
You have to have people investing in it.”
Investors like the idea of diversifying their portfolios, but also want to diversify by buying and selling the stocks of the same company, Sankethan said.
“The real question is how much does that diversification cost?”
For a long time, it wasn’t easy to diversifiy, said John J. Stancil, managing director at investment bank Morgan Stanley.
“There’s a lot that goes into it,” he said, “and it’s going to take a lot to get back to a market that can support it.”
Stancil has been buying and reselling fishing gear for many years, but he had not been in a position to invest in a stock in the stock index before he decided to do so.
Stancill and his wife started out with about $20,000 in cash in a savings account in 2008.
That number increased to about $400,000 by the end of 2012.
Then he started buying and re-selling fishing gear.
They sold their trawls and boats in 2011, then bought them back in 2014, and sold them again in 2015.
Stanchil now sells about $100,000 worth of fishing gear a year, which includes everything from fishing rods and lines to nets and netsharks.
His goal is to earn $100 to $250 a day.
But he has not yet made a profit.
The market is being driven by the Fed and its central bank, the Fedwire, that is supposed to keep markets stable, he explained.
“And the Fed’s goal is the same, to keep prices low, and I think it’s all in the market right now.”
But if prices keep falling, it may become more difficult to get investors to invest, Stancill said.
In fact, the markets have already seen an enormous drop in prices in recent months.
Stancili also worries about the possibility of a selloff.
“I think there are a number of factors that are going on in the economy that would lead to a sell off in the future, including a slowdown in economic growth, the U.S. dollar falling, and, of course, the financial system is in a bit of a bubble, and if there are too many speculators in the system, that could trigger a sell-off, too,” he explained, adding: “I do think we have to be very careful.”
For more than a decade, the Federal Reserve has been trying to help prevent a stock bubble, with various efforts to buy and hold stocks.
But the Fed has been unable to do much, according to Stancili.
Fedwire President William Dudley has said he hopes the Fed