Sometimes it is helpful to take a look at alternative markets to get some clues about the financial markets and the broader economy. The fine art market is commonly viewed as a barometer of wealth and risk-taking. The art market of late has been on a tear. There a number of explanations including the entry of wealthy individuals from the emerging markets, but the simplest explanation is liquidity. Excess liquidity is finding its way into the art market. One can use the stock of Sotheby’s as a proxy for activity in the art market. Not surprisingly the stock has been a stronger performer of late. In today’s screencast we look at what the art market is telling us about the state of the world.*
*Title courtesy Josh Brown.
Items mentioned in the above screencast:
Easy money and the red hot art market. (Big Picture)
A Chinese vase sells for 43 million pounds. (Reuters)
Art as a really alternative investment. (Abnormal Returns)
Proxy investing. (Abnormal Returns)