Renowned “Bubble Predictor” And Founder Of $70 Billion Investment Firm Reveals Why “Dot-Com Crash Was Paradise Compared To Now”
As an affiliate, we may earn from qualifying purchases. We get commissions for purchases made through links on this website.
Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase
New York – News Direct – Masterworks
The great Warren Buffet famously said: “it’s only when the tide goes out that you realize who’s been swimming naked.” If the market has shown anything lately, it’s that holders of growth stocks like it TSLA, AAPLand AMZN need a bathing suit. Since the beginning of 2022, a total of more than $1 trillion has been wiped from the total value of their stocks.
Cryptocurrencies, often touted as a hedge against volatile markets, mimic stock market declines. According to Arcane Research, the 30-day average correlation between Bitcoin and the Nasdaq was as high as 0.82 in early May. Bitcoin is down more than 50% from its peak in November. While inflation continues to accelerate, pushed real bond yields into negative territory.
All eyes on this haven
While financial markets around the world are hanging on by a thread, the $1.7 trillion art market has shown resilience and delivered record results.
In the midst of all this turmoil, the art market’s sales were the highest on record. As the New York auction season heats up, a masterpiece by legendary artist Andy Warhol fetched $195 million at auction.
For many collectors, this is not a hobby – it is a serious business. Jeff Bezos, who once tried to partner with Sotheby’s in an ill-fated venture in 1999, has set record prices for recent art purchases. In 2020, Bezos spent a total of $70 million on two paintings by Ed Ruscha and Kerry James Marshall.
As an investment, fine art is valued not only for its appreciation, but also for its low correlation and inflation-hedging properties. In its latest art market report, Citi noted that art has historically had a near-zero correlation of -.04 to advanced stocks, the lowest of any major asset class.
As investors fled for safety, experts expected high-quality works to be in high demand. Still, the results defied expectations.
Is this market just heating up?
If recent auction results are any indication, 2022 could be one of the best years for the art market. In the first half of the year, the total amount produced at art auctions was 5.7 billion dollars.
The flexibility of the art market is not a new phenomenon. According to Citi data, the art market returned 28.2% during COVID-19.
New demand accelerates growth
The demand in the art market is connected to the growth of wealth. In recent years, Asia’s fast-growing emerging economies have been a huge source of demand, especially for younger buyers. But in today’s digital world, access to the art market has also improved dramatically.
As Citibank recently reported, investing in fine art has opened up the market to investors who are not wealthy. With the Wall Street Journal recently calling the art market one of the hottest in the world, investors are flocking to alternative investment platforms.
The recognized leader in the space industry and the first such platform to enter the market is Masterpieces. According to the company, it has regularly offered its members investments in blue-chip artists such as Andy Warhol, Basquiat and Banksy. Masterworks cites a record of 14.3% without commissions since its inception.
Masterworks’ mission is to democratize the art investing world and help people take advantage of an investment that has previously been exclusive to the very wealthy. We are the only platform that allows you to invest in multi-million dollar artworks from artists such as Basquiat, Picasso, Banksy and many more.
Tom El Hillow
See source version at newsdirect.com: https://newsdirect.com/news/renowned-bubble-predictor-and-founder-of-70-billion-investment-firm-reveals-why-dot-com-crash-was-paradise -compared to current-353962279