Is high-end art slump a harbinger?

Joseph Lazzaro — Fri, 12 Sep 2008 14:23:00 EST

Most investors/readers know about the stream of U.S. economic statistics originating from the U.S. Commerce and Labor Departments, and from other Washington agencies, that form the basis for 'taking the pulse' of the economy.

But more experienced investors know about that group of 'unofficial statistics' that fill-in the economic landscape and frequently provide clues regarding future economic activity that the others do not. In this category, you'll find mall traffic levels, those infamous corrugated box orders, and package deliveries, as metrics of significance.

And another metric worth keeping an eye on, in the interpretation of stock exchange specialists? The demand and prices for fine art.

Fine art, antiques, and collectibles are the aesthetic knick-knacks of the gentry. Or as one New York Stock Exchange (NYSE: NYX) specialist put it, "A lot of the other metrics measure how the little guy is doing. Art demand measures how the big guys are doing."

The significance? "When the little guy is pulling back, that's a concern. But when the big guys are pulling back, now that's a problem," he said.

Art demand slowdown telegraphing global slump?

Moreover, a problem may be surfacing with the 'big guys.' Sotheby's, the world's largest, publicly-traded auction house has dropped about 20% in the past week on concern the global art market may be slowing, Bloomberg News reported. Sotheby's (NYSE: BID) shares declined 39 cents to $22.64 in Friday afternoon trading.

Sotheby's contemporary art auction on Wednesday was not a confidence builder. The sale totaled $10.4 million, well below the $14 million high estimate, will only 69% of lots selling, Bloomberg News reported. In comparison, during a similar sale a year ago, 81% of lots were purchased.

Continue reading Is high-end art slump a harbinger?

Is high-end art slump a harbinger? originally appeared on BloggingStocks on Fri, 12 Sep 2008 14:23:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Bank of America: profiting from the mega-rich

Tom Taulli — Mon, 20 Nov 2006 11:36:00 EST

Filed under: Citigroup Inc. (C), Bank of America (BAC)

The rich are getting richer, right? Well, if so, it should be a good idea to invest in money management services for the mega-rich.

At least that was the theory when Charles Schwab (NASDAQ:SCHW) purchased US Trust in 2000 for about $2.9 billion. Interestingly enough, Schwab is now selling this division to Bank of America (NYSE:BAC) for about $3.3 billion.

US Trust has a venerable history, getting its start in 1853. No doubt the firm's stability is a great attraction to its high-net worth clients.

However, this market is highly competitive, with other big-names such as Citigroup (NYSE:C) playing a major role.

As for Bank America, the deal gets them a bigger presence quickly, as well as a great brand. Keep in mind that on average an US Trust client has about $60 million under management. It also has a number of billionaire clients, and is the fourth largest manager of private wealth in the U.S.

Basically, it was tough for Schwab to provide the kind of services the mega rich want -- such as hedge funds, private equity and even IPOs. For Bank America, which is the second largest manager of private wealth in the United States, this should not be a problem.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.

Bank of America: profiting from the mega-rich originally appeared on BloggingStocks on Mon, 20 Nov 2006 11:36:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments