Psychic regression may be the result of the current environment.
Election paranoia and gridlock, stubbornly high interest rates, nosebleed equity valuations, multiple wars with nuclear threat, art market swoons, and capital flooding into specialized debt like Jack and the Beanstalk with his magic beans.
Sam Zell, the real estate legend, nicknamed the “Grave Dancer,” may provide a pathway. Be a counter-trender. Explore markets that are meaningfully down. Don’t sit endlessly in cash which is not a long-term strategy. Careful diversification across low correlation asset classes maybe a prudent course of action. The challenge is how?
The art market which we live on a daily basis is one possibility. Fewer Chinese and Russian buyers, high interest rates causing pain for leveraged owners, the challenges above scaring the uber-wealthy, and Gen X and Millennials slowly recovering from the residual inflation effects have all combined to drive down art prices. Auction houses and dealers have pulled in their horns with hi-lo estimates aggressively lower for the fewer and possibly forced sellers. Nevertheless, all of us know that the time to buy is when there is distress interspersed with glimmers of hope, which are beginning to emerge in the art markets. Art has compounded wealth overtime.
Two investment bromides, we assert, are important and as true today as ever: buy quality and diversify. Quality means name brand artists. Diversification is not as easy. This is where we come in with aShareX and its fractional ownership facilitating diversification (seeasharex.com).
To reprise what we offer:
•True current market pricing
•Ability to bid as much as you want
•Confidence from SEC oversight of the common stock evidencing ownership iffractional bidders win
•Investor control directly on sale of the asset
In Sum
Art and collectibles can be a meaningful adjunct to other investments:
•True diversification - low correlation to equities and fixed income
•Long term attractive returns
•An attractive entry point today versus historical pricing
Finally, the opportunity to participate in bite-sized fractional interests in high-quality and hoped-for-enduring-value assets through the aShareX platform.
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