Sotheby's Indicator...Checking In

Art is on my mind these days. Whenever Ellen and I travel, we look for local artists and generally buy something for our home. Whatever we buy, it could turn out to be a better investment than the market at this point :).

In April 2007 I started getting concerned for the market based on the price action in Sotheby’s . Since than, I have checked in monthly . I decided to check back in on Sotheby’s today. It has been a pretty violent correction, but if you look at the historical spikes (1989 and 1999), market tops are in for now .

In 1989, Sotheby’s fell 66 percent pretty fast and bottomed a year later. In 1999, Sotheby’s fell 75 plus percent and we did not bottom in the stock or the market for 4 years.

The less than 50 percent decline in Sotheby’s says that we may not have much more in way of price, but MUCH more in way of time before the market gets good legs.

Keep doing less and taking small jabs if you must participate.