Castlestone is anticipating a roughly 40 percent rise in prices to be realized over the next two years or so, as the market continues to recover from recent lows that it hit in Q2 2009.
The Collection of Modern Art Fund courtesy Castlestone Management invests primarily in Post-War art.
The art firm feels the stock market rally not only suggets clear signs of a far improved market sentiment, but also points to an upward trend especially as equity prices are significantly up from the dramatic fall in Q4 2008.
Stocks are considered a key indicator when analyzing the art market trends. Research shows that art tends to lag equities by almost six to 18 months. The Mei Moses All Art Index has established this fact. There is a clear co-relation between a favorable art investment outlook and equity market conditions.
Art can offer investors the chance to diversify their portfolio basket by diverting it from traditional asset classes. The recent recovery has thus increased the total sales volume at the Sotheby’s and Christie’s auctions of Impressionist & Modern and Contemporary Art. In fact, Castlestone expects art prices to appreciate further before they enter a consolidation phase in 2011. Castlestone Management’s senior art adviser Constanze Kubern has been
quoted as saying:
“In times of economic downturn it has become apparent that museum quality Post-War art has not only increased in demand but also in value, especially artists who have manifested their names in art history due to their unique techniques and lifetime achievements have contributed to sell well.
“Modern/Post-War Art has shown to be a safer category pushing its share of global fine art turnover from 44 percent in 2008 to 48 percent in 2009, while contemporary art has dropped from 16 per cent to ten per cent for this year. Hence, we remain confident that the Collection of Modern Art Fund’s strategy of investing in modern/Post-War art is the way to move forward."
In essence, you should stick to your strategy irrespective of the market condition. Patience will pay, ultimately!