Art in the Portfolio
Assuming an investor understands the risks and can navigate the market successfully, what role can art play in terms of portfolio characteristics, such as expected returns, volatility, and correlation with other asset classes?
The Mei Moses Fine Art Index creates auction-market statistics based on the approach taken with the Case-Schiller real estate indexes. For the past 25 years, art in general has substantially underperformed stocks, but outperformed for the past 10. At 50 years, the returns are roughly the same while volatility of art is lower than stocks and correlation to stocks is slightly negative.
Work by Clare McAndrew, founder of Arts Economics, which looks at art relative to commodities, stocks, and property, supports the idea that art can improve a portfolio's risk-return profile.
GB
The Mei Moses Fine Art Index creates auction-market statistics based on the approach taken with the Case-Schiller real estate indexes. For the past 25 years, art in general has substantially underperformed stocks, but outperformed for the past 10. At 50 years, the returns are roughly the same while volatility of art is lower than stocks and correlation to stocks is slightly negative.
Work by Clare McAndrew, founder of Arts Economics, which looks at art relative to commodities, stocks, and property, supports the idea that art can improve a portfolio's risk-return profile.
GB
posted by Gordon Bell at
5:34 PM
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