Atlantic Coast Recycling Unveils State-of-the-Art Recycling Facility; Capital Investment Led by B. Riley Financial

Atlantic Coast Recycling Unveils State-of-the-Art Recycling Facility; Capital Investment Led by B. Riley Financial

PR Newswire

PASSAIC, N.J., April 19, 2024

PASSAIC, N.J., April 19, 2024 /PRNewswire/ — Atlantic Coast Recycling today announced the grand opening of its recycling processing facility in Passaic, New Jersey. The year-long redevelopment and construction of this industry-leading recycling plant was enabled by a $47 million capital commitment led by B. Riley Financial, Inc. (Nasdaq: RILY) alongside other strategic investors.

With its state-of-the-art equipment and technology, the new plant is one of the country’s most advanced facilities for both dual and single stream processing of residential and commercial recyclables.

The 125,000 square foot plant has the capacity to process over 50 tons of residential and commercial recyclables per hour. Its exceptional processing speed enables the production of high-quality finished paper, plastic and metal for domestic and international manufacturers and mills while streamlining the recycling process to save municipalities valuable time and resources. All recyclables are stored within the enclosed facility for optimal environmental safety.

Atlantic Coast Recycling is a market leader in residential recyclables processing across northern New Jersey and services commercial businesses throughout the Tri-State metro region. It proudly serves over 60 municipalities within New Jersey’s Bergen, Essex, Hudson and Passaic counties – a population of approximately one million people.

The recycling processing plant was unveiled during a ribbon-cutting ceremony in Passaic on April 19, 2024. Representatives from the New Jersey Department of Environmental Protection (NJDEP), NJ Senate, and the City of Passaic were in attendance.

About Atlantic Coast Recycling
Atlantic Coast Recycling (formerly Atlantic Coast Fibers) is one of the largest private processors in the New York tri-state metropolitan area with a proud history in recycling that began over 80 years ago. 

Contact: John Stanton
John.Stanton@AtlanticCoastRecycling.com
908-510-6257 (Cell)
732-475-0100 (Office)

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SOURCE Atlantic Coast Recycling; B. Riley Financial

NEW YORK, April 17, 2024 (Newswire.com)
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There was a time, in which investing in art was widely perceived to be the exclusive province of knowledgeable connoisseurs, high-net-worth individuals, or both. However, that has changed markedly over the past 25 years. In 2023, the global art market came to nearly $70 billion, according to a PBS report. In recent decades, returns have outpaced bonds and blue-chip art has outperformed the S&P 500 by 180%. This has prompted scores of investors of all stripes to seek to capitalize on the sector. An added benefit is the possibility of portfolio diversification, which may be achieved through the investment platform Yieldstreet.

With that in mind, here is a look at understanding art as an investment.

What is the Latest in Art Investing?

The ARTEX Stock Exchange recently started trading, which was big news in the art investment space. The European marketplace enables investors to buy shares of a masterpiece. One recent trading session in which shares opened at EUR 92.20 and closed at EUR 95.00 highlighted the potential of art shares as a key asset class. 

While investors can make purchases through auctions and galleries, fractional ownership may be the wave of the future. For example, Yieldstreet, which offers the broadest selection of alternative asset classes available, offers opportunities for investors to potentially grow their capital through fractional ownership of a diversified pool of works by mid-career and blue-chip artists.

Yieldstreet also offers opportunities to purchase shares in contemporary fine art with its art equity fund. While every investment carries risk, each opportunity is highly vetted. The fund also provides another means of diversifying holdings. Crafting a mixed portfolio of asset types may serve to mitigate overall risk as well as potentially offer protection against inflation.

What Makes Art a Good Investment?

Art is favored as an investment for its relative stability. Unlike stocks, which can often fluctuate with the economy, art values tend to be largely stable. This phenomenon is generally attributed to the asset’s independence from events such as global pandemics. Art values remained steady in 2020, while other assets experienced significant volatility.

A potential drawback to investing in physical artworks is that art isn’t particularly liquid — it isn’t easily converted to cash. However, many investors prefer to use art to diversify portfolios and as part of estate planning. In other words, they invest in art for secondary income, not as their primary asset.

The growing art market has demonstrated ongoing resilience and is expected to remain steady this year, driven in part by share ownership and online platforms. Moreover, technology is increasingly improving transparency in managing and valuing art collections. As an alternative investment, art holds the potential to provide portfolio diversification and may shield against market downturns.

Source: Yieldstreet

Most investors stick to traditional assets like stocks and bonds, usually because they’re comfortable with the familiar. However, adding alternative investments to your portfolio can provide broader diversification, help reduce volatility, and yield higher returns. Art is gaining traction as an alternative investment option—and not just among the ultra-wealthy.

Different types of art to invest in

The art world offers numerous options for investors. The best ones for you depend on your goals, risk tolerance, and interests. Here are a few to consider.

Blue-chip art

Blue-chip art refers to high-value works created by artists with an established history of stability and demand in the art market. These artworks consistently command high prices and become more valuable over time, making them relatively safe investment options for investors and collectors.

“Like with stocks, the more blue-chip the art, the higher the likelihood that a painting or sculpture will hold or even increase in value,” says George Lindemann, Jr., president of the board of The Bass, a prominent contemporary art museum in Miami Beach.

Emerging art

Emerging art is the opposite of blue-chip art. It comes from artists in the early stages of their careers who are not yet established. Emerging art presents an opportunity for higher returns, but it has risks. “Emerging art most often doesn’t emerge,” Lindemann says. There can only be so many Picassos, Rembrandts, or Warhols, he adds, but they, too, were once unknown.

“Of course, like with a tech startup, if you pick an artist who subsequently becomes famous, you can get lucky,” Lindemann says. “The smartest way to buy emerging art is if you love the work or want to help the artist. Then let the future decide whether a market exists.”

Limited edition prints and multiples

Prints and multiples are generally priced lower than one-of-a-kind artworks, offering a more accessible entry point for investors. They’re produced in limited quantities, and are usually signed and numbered by the artist. While not as exclusive as original artworks, prints and multiples can appreciate in value, especially if the edition sells out or the artist’s reputation increases.

5 ways to invest in art

1. Individual artworks

If you’re interested in owning physical art, you can buy works directly through a gallery, auction house, or private art dealer. Choosing a good investment requires in-depth knowledge of the art market, and how works are valued and appraised. It’s helpful to study artists and periods you find exciting, and visit galleries, museums, and auction previews to become more familiar with the artists’ works.

You’ll also want to research the artist’s past market performance and growth potential—and focus on finding something that resonates with you. “It’s better to buy something you love, and maybe it will hold or go up in value,” Lindemann says.

2. Fractional shares of artworks

Platforms including Masterworks let everyday investors access the market through fractional shares of physical artworks by such artists as Banksy, Basquiat, Picasso, and more. Masterworks handles the entire process of researching, buying, securitizing, and storing the artwork. The company then holds the piece for three to 10 years while looking for a good exit opportunity, sells directly to top collectors in the art world, and shares the after-fee proceeds with investors.

3. Art funds

You won’t find any art exchange-traded funds (ETFs) or index funds on traditional investment platforms. However, companies such as Yieldstreet offer funds for investing in diversified pools of artworks by blue-chip, mid-career, and emerging artists with as little as $10,000. Investment decisions are based on third-party appraisals and analysis from a proprietary database managed by Yieldstreet subsidiary Athena Art Finance, which has funded over $400 million worth of fine art investments.

4. NFTs

A non-fungible token, or NFT, is a virtual deed conveying ownership of a digital asset created on a blockchain network like Ethereum. Sales and transfers are recorded on the network, producing a verifiable price history and provenance ledger. NFTs experienced meteoric growth just a couple of years ago, with the top NFTs selling for millions and even tens of millions of dollars. However, the NFT market has significantly declined, and it’s unclear if or when the market will recover.

Lindemann says NFTs had a moment, but it’s passed. “Perhaps the most blue-chip of the NFTs will survive over time, but who knows? If you always wanted a particular NFT but could not afford it, now might be a good time.”

5. Art stocks

Another option for investing in art is to buy shares of companies involved in art. However, many art-related stocks are high-risk penny stocks or thinly traded (or both), so they’re often illiquid investments that could be difficult to buy and sell.

Pros and cons of investing in art

More about investing in art

Role of art investments in a portfolio

As an alternative investment that’s uncorrelated to stocks, bonds, and other traditional assets, art can help diversify your portfolio. Diversification spreads your investments across different assets, so a single adverse event can’t wipe out the value of all your assets.

“In today’s volatile market where asset classes are becoming increasingly correlated, investors are seeking diversification to manage risk and protect returns,” says Matt Sutherland, SVP of communications, content, and partnerships at Masterworks. He adds that contemporary art has appreciated more than 11.5% in the nearly 30 years since 1995—compared to about 9.6% for the S&P 500. Still, art “is underrepresented in most investors’ portfolios because it has largely been inaccessible to everyone but the super wealthy,” Sutherland says. Platforms like Masterworks have changed that by creating a fully managed, passive investment vehicle for contemporary art.

Art can also serve as a hedge against inflation: It’s a tangible asset that’s not susceptible to fluctuations in the financial markets. According to the Masterworks All Art Index, contemporary art prices outpace the S&P 500 and other assets like gold during high inflation periods, making it one of the best inflation hedge assets.

When should you invest in art?

It’s difficult to time the market, whether you’re investing in a traditional or alternative asset. A better strategy is to consider your financial situation and how long you intend to hold the art.

Investing in physical art makes the most sense if you have a long time horizon and the capital to buy and properly store, maintain, insure, and potentially restore the artwork. “Building an art collection can cost tens of millions of dollars just for the art itself, not to mention regular appraisals, transportation, and storage that come with managing the physical piece,” Sutherland says.

If you’re looking for a short-term investment—or want to invest a smaller amount—an art fund or fractional ownership might be a better option. “Masterworks allows investors the ability to enter the art market with less capital and without the hassle or unique expertise needed, and still experience the returns collectors have been enjoying for years,” Sutherland says.

Alternatives to art investments

If you decide art investing isn’t right for you, you have other options, including traditional investments and various other alternatives.

Traditional investments

Stocks, bonds, and funds form the basis of many investment portfolios. You can buy and sell shares in a taxable brokerage account or hold your investments in a non-taxable IRA, like Roth IRA accounts.

Alternative assets

Art is but one of many types of alternative assets. To diversify your portfolio, reduce volatility, or seek higher potential returns than traditional investments offer, consider other alternatives including commodities, derivatives, real estate, private equity, or venture capital.

TIME Stamp: Multiples offer a more accessible way to own artworks

Lindemann says that for beginners and experts alike, multiples have a lot of advantages. “Sculptures, prints, and other forms of art that come in a series are a good way to collect. There is often a public record for valuations, and you have a better chance of selling a blue-chip multiple than an emerging artist’s work that never emerged.”

Of course, multiples also have the potential to appreciate in value. “Imagine owning one Andy Warhol print,” Lindemann says. “It wasn’t all that expensive 20 years ago and still had the allure of a famous artist. Today, Warhol prints can sell for six figures or more.”

Frequently asked questions (FAQs)

What are the best art stocks to invest in?

Investing in art-related stocks is possible, but many are high-risk penny stocks or thinly traded. Still, there are a couple of stocks to consider that trade with enough volume to be liquid investments.

• Adobe (Nasdaq: ADBE). Adobe’s graphic design software products, including Photoshop and Illustrator, are used to create and edit digital art.
• Etsy (Nasdaq: ETSY). Etsy is a global marketplace that connects its community of sellers with buyers looking for unique and creative goods, including handcrafted pieces and vintage items.

Is art a valuable investment?

Art often holds or even appreciates in value. “Governments, royalty, nonprofits, and ordinary people have always wanted to own art,” Lindemann says. “This demand gives artwork its monetary value.”

An art investment’s value depends on the prices you initially buy, and eventually sell, the work for. The artist’s reputation, demand for their work, and additional costs—such as transaction fees, storage, maintenance, and insurance costs—influence both. The art market has generally appreciated at a steady rate over time. According to Sotheby’s Mei Moses Index, the annualized average return of the broader art market between 1950 and 2021 (71 years) was 8.5%, slightly below that of the S&P 500.

Of course, art’s value goes beyond the financial. Investing in art for its cultural value and the simple pleasure of owning it can be more rewarding than earning a profit. “Historically, the best art represents a moment in time, a capsule of what a culture looked or looks like,” Lindemann says.

Hyundai Motor India Foundation (HMIF) has emerged as a significant patron of the arts in India, investing over ₹5.8 crores to support more than 25,000 artists and art collectives across the nation. Through its various art CSR programs like Art for Hope and the Kalagram Artisan Fest, HMIF has provided a vital platform for artists to showcase their talent and celebrate regional art forms.

Notably, Art for Hope has granted over ₹1.05 crore to over 100 beneficiaries, furthering HMIF’s commitment to promoting cultural enrichment and artistic expression. With its holistic approach to art initiatives, HMIF continues to play a pivotal role in nurturing India’s diverse artistic landscape and fostering community engagement.

Puneet Anand, AVP & Vertical Head, Corporate Affairs, Hyundai Motor India said, “Hyundai is committed towards playing a key role in India’s holistic growth. Under Hyundai’s global CSR philosophy of ‘CONTINUE’ we have been giving back to the society with various initiatives under the pillars of ‘Earth’, ‘Mobility’ and ‘Hope’. Our dedicated art programs have been holistic change-makers in the national art space. Through our art programs, including Art for Hope and Artisan Fest, we are fortunate to have reached out to over 25,000 artists. Our dedication to the Indian art community remains unwavering. Hyundai Motor India Foundation has invested over ₹ 5.8 crores towards reviving lost art-forms of India, till date.”

 

“HMIF’s flagship, art CSR program, Art for Hope has awarded grants of ₹ 1.05 crore to 100 plus artists and art collectives. Art for Hope program has continued to inspire positivity and growth, documenting the journey of ‘Progress for Humanity’ for India’s diverse art creators. This inclusive program has been a key enabler for artists from various domains, who are undiscovered, need support to carry on their art form, and in need of a larger platform. I am hopeful, HMIF’s art programs will support and promote India’s rich and storied heritage of arts, craft and culture” he added. 

Two companies involved in an alleged £1.4m art investment fraud have been shut down by the courts.

The high court ordered Halifax Mannin and Hey Design Services to be wound up in the public interest on 1 March, after a probe by the Insolvency Service found they together misled or bullied customers out of about £1.35m.

The firms were brought to the attention of the Insolvency Service after several complaints were made, but during official inquiries officers were unable to determine the exact nature of either company’s trading activities, or where business activity was being conducted from.

READ MORE: Companies lost almost £1m through this donation scam

However, investigators did establish that Halifax Mannin, based in Wales, and Hey Design Services, based in Birmingham, both received payments from people persuaded to make investments in works of art by renowned painters.

According to the Insolvency Service, between October 2017 and October 2018, Halifax Mannin received almost £250,000, while Hey Design Services secured just over £1.1m in funds.

It added that the vast majority of the almost £1.4m was paid out of the companies’ bank accounts, but investigators could not determine how the funds have been spent as the directors have failed to co-operate with inquiries.

READ MORE: Watchdog warns of investment scams after Brits lost £200m in 2018

Investigators were also able to establish that the art investment scheme the companies were involved with appears to have been operated by a separate business in Spain, called Asset Consulting Services, which has been subject to a previous public warning from the Financial Conduct Authority

The court wound up Halifax Mannin and Hey Design Services on the grounds that they traded with a lack of commercial probity, having been incorporated or used as vehicles for fraud, with their sole purpose being to receive money from investors who were misled or bullied into making an investment.

Furthermore, the companies and their directors failed to cooperate with the investigation and the companies operated with a lack of transparency.

Story continues

READ MORE: More than £50m lost to “romance fraud”

David Hope, chief investigator for the Insolvency Service, said: “Despite accepting more than a million pounds from members of the public, including elderly and vulnerable people, there is no evidence to indicate that the investment had any value or was likely to generate any return for the investors.

“Thankfully the courts have a put a stop to these companies, preventing anyone else from coming to harm, and I would encourage anyone approached by or thinking about making an investment with Asset Consulting Services to read the warning issued by the FCA and to take independent financial advice before making any investment decision.”

Good morning. Will unrest between Iran and Israel send stocks south? Our view is that it probably won’t, simply because geopolitical disruptions don’t usually matter. As we argued back in October, markets don’t understand war any better than the rest of us. Is this time different? Email us: robert.armstrong@ft.com and ethan.wu@ft.com.

Art is not an investment, but unfortunately investment is an art

Someone from the art world or the money world, or both, is always making the case that art is an investment, not just an adornment. It is not only a store of value; it creates wealth over time, they say. Sotheby’s fine art index pegs the compound annual growth in nominal art prices between 1950 and 2021 at 8.5 per cent, well ahead of inflation. Banks and consultancies turn out reports tracking the growth of the art market and discussing its beneficial contributions to a diversified portfolio. Art, in short, is positioned as the best of the esoteric asset class, a group that includes wine, stamps, handbags, trainers, and so on.

These pitches are generally treated with the scepticism they deserve. Talk face to face with someone in the art game — one who is not trying to sell you something — and they will very likely press upon you the folly of buying art with the expectation of gains, and that only the work of the very best artists can even be counted on to retain the value paid for it.

Academic studies on the topic broadly agree with the sceptics. Few if any large high-quality studies find that the art market, however you slice it, can provide returns as high as equities. One large study, which tried to extend beyond the standard technique of tracking repeat sales of the same artworks, found annual real returns just shy of 4 per cent between 1957 and 2007, on par with corporate bonds, but with much higher volatility. Another author surveyed 13 studies of painting and prints, which found annualised returns between 1 and 5 per cent. One study, covering Picassos only, found 8 per cent returns. Again, the author, Benjamin Mandel, found that:

In terms of volatility, art unambiguously has the highest variance of all assets, up to twice or three times that of the Dow Jones industrial index or corporate bonds. Thus, given low average real returns, art is often a dominated asset [eg an asset that will always provide a worse return than some alternative] in a portfolio that seeks to maximise returns and minimise variance.

The debate over returns and portfolio benefits of art is not closed. The measurement problems in the field are too great for that. The intervals between prices observations are often many years apart, the repeat-sales methodology is limited, different sub-markets behave very differently, and so on. 

For example, on the key question of whether the highest quality artworks — that is, the most expensive ones — have the highest returns, studies disagree. Renneboog and Spaenjers find that “the annualised real return at the 95th [price] percentile is almost five percentage points higher than the return at the fifth percentile.” On the other hand, the much-followed work of Mei and Moses on art prices from 1875 to 2000 found that:  

Our . . . estimate on the American artworks indicates that a 10 per cent increase in purchase price is expected to lower future annual returns by 0.1 per cent. Moreover, our results are robust to whether nominal prices or real prices are used in the regressions. Thus, our study seems to suggest that art investors should buy less expensive artworks at auctions.

Mei and Moses explicitly tie their findings on outperformance by cheaper artworks with the “small firm effect” in stock markets.  

Given what we do know, however, there seems to be no pressing reason for wealthy families to add art to their portfolios of stocks, bonds, and real estate, unless they also enjoy looking at it, or using it to impress their friends and enemies. The best that can be said for sure is that owning fine art might not be a big financial mistake. 

But the interesting question is not the degree to which artworks can act like a financial asset. It is the degree to which financial assets, especially stocks, often act like artworks.

Don’t scoff. One might insist that the future value of artworks is essentially inscrutable. Buyers of contemporary art, for example, can’t know who will be a future Warhol or Basquiat, and who a forgotten also-ran. Remember the poor reviews for Monet and Degas in the early 1870s (“a chaos of indecipherable palette scrapings”). Recall, however, the work of Hendrik Bessimbinder on equity markets. Over time, a tiny number of super-stocks account for the majority of stock market returns. Stock pickers, like art investors, are hoping they find a Basquiat — that is, an Apple — at the right time. Yes, in stock markets the problem can be solved with diversification and indexing, but probably not in art (though some are trying). The point is that the inscrutability we all attribute to the future of art prices is a characteristic of stock prices, too. 

Surely stocks have a fundamental their stock prices can revert to — dividends or, failing those, free cash flow? The same problems apply. Collectively, the stock markets revert to the fundamentals. Those indices, however, contain plenty of big stocks whose prices are linked to fundamentals loosely, or not at all.

Most important, there is a very good case to be made that stock prices, like art prices, respond in the first place to changes in wealth — or if you prefer, liquidity — and in particular the wealth or liquidity owned by the richest decile. In any study that explored the relationship between art and equity prices, Goetzmann, Renneboog and Spaenjers find that equity returns, especially capital appreciation (as opposed to dividends) have a big impact on art prices, and that widening wealth inequality supports art prices, too. They write:

The price of an art object is only limited by how much collectors are willing and able to pay for it. Higher incomes can be expected to lead to higher art consumption, and thus to a higher price level in the art market. However, given the relatively limited supply of high-quality art, average buying power may matter less to the determination of high-end art prices than how much money the wealthiest members of society can spend.

It is amusing to substitute, say, “Nvidia shares” with “art object” in that paragraph. One might even remake the first sentence with 2001 and 2007 in mind, and say: “The price of a stock market is only limited by how much investors are willing and able to pay for it,” and go on from there. 

More seriously, Goetzman et al argue that art price changes are largely a function of wealth concentration. This is not far from saying, following Mian, Struab and Sufi, that inequality has contributed to the rise in the values of financial assets held mostly by the rich (and correspondingly the debt held mostly by the poor). Nor is it far from saying, as so many have in recent years, that the Fed has inflated asset prices artificially by forcing more cash on to investor balance sheets than investors want, forcing them out on the risk curve (perhaps as far as the art market). 

The stock market and the art market are not the same. The stock market is the better bet. But for all that, there is a lot more of the mystery, irrationality, and inequity of the art market in the stock market than we like to admit. 

One good read

Some very good news.

As part of a long-term plan to support increased demand for cementitious products across the UK construction market, Aggregate Industries has announced a significant investment in a new ‘Super Shed’ at the Port of Liverpool.

 

Owned by the UK’s second largest port operator Peel Ports Group, the substantial new import facility – one of the largest of its kind in Europe – will facilitate the storage of more than 40,000 tonnes of cementitious products at any one time.

 

Aggregate Industries has made a long-term commitment to the Port by signing a 25-year lease agreement. This represents the third major deal made by the manufacturer in the last six months as part of a strategic investment programme into deep sea terminals.

 

The latest investment will help the business maintain a continuous supply of lower carbon cementitious solutions throughout the North of England & Wales, with the addition of two surrounding berths and a two-chamber flat store at the Portside. This will help accommodate larger vessels and improve overall transport efficiencies.

 

With each import investment strategically chosen to support the firm’s regional logistics infrastructure, this growth in distribution capability will help Aggregate Industries to offer best in class service to local customers – with minimal lorry miles from terminals to sites – for the ultimate in sustainable, agile, secure supply.

 

Head of Supply Chain at Aggregate Industries’ Cement Division, Matt Owen, said: “Our commitment at Liverpool is one of a series of planned developments to respond to increasing market demand across the surrounding regions.

 

“By investing in deep sea facilities, we’re looking to streamline operations as well as reduce the embodied carbon in our imported products, saving up to 25% of CO2 per tonne of material thanks to increased vessel capacities.

 

“Our investment in the Port is indicative of the key role freight is playing in helping us to build resilience and surety of supply for customers, so we can always respond in an agile way to customer demand.”

 

Tom Harrison, Group Strategic Accounts Director at Peel Ports Group, said: “This significant investment highlights AIUK’s long-term commitment to driving growth and opportunities across the Port of Liverpool, and we’re proud to be involved in seeing it come to fruition.

 

“At Peel Ports, we believe we’re more than just a port, but central to enabling a more agile, efficient, and sustainable supply chain for the UK’s industries by offering port-centric solutions such as this to help our customers thrive.

 

“Providing these facilities, which enables AIUK to better serve the industry across North of England and Wales with its cementitious solutions is a prime example of this.”

Investors eyeing the FTSE 100 index are optimistic about a potential turnaround in fortunes for the under appreciated market in the upcoming year. Despite experiencing a notable discount compared to its global counterparts in 2023, market sentiment suggests that lower interest rates could be the catalyst for change in 2024. In contrast to London’s large-cap benchmark, which saw only modest gains throughout the previous year, Wall Street’s S&P500 index soared by a remarkable twenty percent. This stark discrepancy underscores the impact of divergent monetary policies and economic outlooks between the UK and the US.

Market optimism surrounding the S&P 500 was fueled byexpectations of a soft landing for the US economy, coupled withanticipations of at least three Federal Reserve rate cuts in the coming year. These measures are seen as potential drivers forsustained growth and investor confidence in US equities. Againstthis backdrop, investors are closely monitoring developments in global economic dynamics and central bank policies, recognizingthe potential implications for the FTSE 100 index. The prospect oflower interest rates could stimulate investment activity, bolstercorporate earnings, and ultimately contribute to a resurgence in the performance of UK stocks. As investors navigate evolvingmarket conditions and assess the relative attractiveness ofdifferent asset classes, the FTSE 100 stands poised for potentialgains in 2024. However, uncertainties persist, and prudent riskmanagement remains paramount in navigating the intricacies ofthe global financial landscape.

Trading Tips

Stock trading in the UK and the world of arts may seem liked instant realms, but their intersection presents intriguing investment opportunities and trading tips that investors should consider. While the stock market traditionally deals in financial assets, investing in art-related stocks provides exposure to the thriving art industry, offering a unique blend of financial potential and cultural appreciation.

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Investing in art can serve as a pathway to financial independence, offering the potential for significant returns over the long term. While art is traditionally viewed as a passion-driven pursuit, holding onto art assets for extended periods, often a decade or more, can prove to be a lucrative strategy for generating future income. Historical artworks, particularly those by renowned artistslike Da Vinci and Modigliani, command staggering prices at auctions, sometimes exceeding $100 million. However, contemporary artwork is emerging as an increasingly attractiveinvestment option. Since 1985, contemporary art has delivered anannualized return of 7.5% to investors. Despite the overall art market being valued at approximately $64 billion in 2018, contemporary artworks are relatively more affordable, makingthem appealing investment opportunities.

Nevertheless, investing in art presents unique challenges. The value of artworks is largely subjective and driven by consumer sentiment. Therefore, an artwork’s worth is contingent upon the perceptions of others, with no guarantee of future profitability. Consequently, art investments are considered alternative investments and carry inherent risks. Now that we’ve explored the ‘why’ behind investing in art, let’s delve into the ‘how’—identifying a good art investment.

How to Identify a Good Art Investment

Investing in art carries inherent risks, as there’s no assurance thatany artwork will appreciate in value. While safer investments mayinclude larger, well-known pieces of art, they often exceed the budgets of most investors. However, some art investments haveyielded remarkable returns:

• “Patrick and Omari” by Jordan Casteel sold for £299,250, exceeding its estimated value of £40,000-£60,000.

• “Untitled (Symbol)” by Henry Taylor sold for £230,750, surpassing its estimated value of £30,000-£50,000.

• “Georgia” by Shara Hughes sold for £337,500, exceeding itsvaluation of £60,000-£80,000.

• Artworks by Loie Hollowell have seen valuations rise from a few thousand to £359,250 in just three years.

While success in art investment isn’t guaranteed, closelymonitoring the art world and identifying promising emergingartists can uncover valuable investment opportunities. By stayinginformed and observing trends, investors can potentially capitalizeon the growth potential of art assets in their portfolios.