Friday, December 16, 2016

Art Market: A Revival Is In The Air

(Drivebycuriosity) - There is a lot talk about the chilling market for art. Yes, this year´s sales of the big auction houses (Sotheby`s & Christie`s) are down and many mid-sized galleries are closing. But I think, there is a revival in the air. Why that?

The art market follows the stock market - or it walks side by side at least. The art market flourished before 2015 parallel to the booming global stock markets (forbes). Many investors put their money into risky assets - including pricey art works - hoping on further rising prices (above a chart of the SP500, which represents the US stock market).

The US stock market paused from early 2015 through this November 2016 - and so did the market for art. Investors avoided risky assets - including art work - because they were skeptical for the global economy (weak US, China & Europe). But in the recent weeks we are witnessing a return of the global stock markets and many stocks are rallying.

It seems that the investors got more appetite for risk. They respond to better news from the economic front and it looks like that they are becoming more optimistic for the future & the economy. As a result they are buying risky assets like stocks again. I assume that they are purchasing art as well. The coming auctions will show.

No comments:

Post a Comment