14.08.2024
In This Issue
🎢 The Market Rollercoasters
🔄 Collectibles Primed For Turnaround
🏀 Kobe Bryant Collectible Value Surges
🚓 Banksy’s Latest Art Stolen Already
The Market Rollercoasters From Panic to Rebound: After a few weeks of cooling off where tech stocks seemed overvalued – the S&P 500 dipped by 2.5% and the Nasdaq by 7% – last Monday hit hard. U.S. stocks had their worst day in two years: the S&P 500 dropped 3%, the Nasdaq 3.5% and the VIX soared to pandemic-era levels. But, in true market fashion, by Thursday, the S&P 500 staged its biggest rebound since November 2022, driven by unexpectedly strong job data. By Friday, stocks were back on track, leaving the Nasdaq only slightly down for the week. Talk about a rollercoaster.
A Cocktail Of Factors At Play:
After months of calm, risks emerged, prompting a sell-off. But then, opportunistic buyers swooped in, driving the recovery. So, who’s right – the ones panicking or the bargain hunters? In the unpredictable world of investing, it’s tough to say in real time. Drawdowns are common, and while some lead to deeper declines, others don’t. Ideally one should consider watching consumer spending and corporate profits for clues on future trends.
Diversification Can Help Cushion Losses: If your investments are too concentrated, you could consider diversifying. For long-term investing, it might make sense to consider staying the course, as stocks have historically rebounded during bull markets and panic-selling is often seen as counterproductive. So if you don’t need your funds immediately, maintaining your investment strategy and weathering the turbulence could potentially be worth considering.
Collectibles Seasoned By Economic Shifts: Despite a quick stock market rebound, it’s evident that broader financial markets are grappling with the fallout from a higher rate environment. The collectibles market, however, is more seasoned in this arena, having already navigated its own recession-like conditions. Unlike other markets, they have already felt the sting of economic downturns, with art, cards and wine all taking hits. However, broader economic indicators haven’t yet confirmed a full-blown recession, and equities, led by their strongest performers, have remained resilient until recently.
Collectibles Primed For Turnaround: Historically, recessions have significantly impacted the art market, with past downturns – like those of the early 1980s, early 1990s, the dot-com bubble and the Great Recession – leading to steep losses. Yet, as collectibles have already undergone substantial corrections, they might be poised for a quicker recovery if interest rates are cut. Past rate-cutting cycles have generally spurred positive returns in equities and fixed income while boosting consumer spending. With lower entry prices and a likely influx of liquidity, collectibles could potentially be primed for a favourable turnaround. The recent years have taught us to expect the unexpected, so navigating the rest of 2024 may require embracing the unpredictable and staying open to unconventional movements.
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👍 Kobe Bryant Collectible Value Surges: Kobe Bryant’s Staples Center locker just set a new record, fetching an astonishing $2.88 million at Sotheby’s New York on August 2, 2024. This iconic locker, a symbol of Bryant’s 20-year Lakers career, witnessed five championships, a farewell game where he scored 60 points, and countless unforgettable moments. Verified by MeiGray, it was the only locker with a combination lock and had a distinctive wood grain pattern, making it a unique piece of memorabilia. Originally estimated at $1-1.5 million, the price surged nearly triple its low estimate due to fierce last-minute bidding, cementing it as the third most expensive Kobe item ever sold. As collectors scramble for increasingly unique pieces of Bryant’s legacy, who knows what rare gem might surface next?
👎 Banksy’s Latest Art Stolen Already: Just hours after its debut on a satellite dish in south-east London, another Banksy artwork has vanished, and the artist’s team suspects theft. This elusive piece, part of a series featuring animal-themed silhouettes, was already the fourth of its kind to face such a fate. While not the first Banksy to disappear, this swift removal only adds to the ongoing mystery and intrigue surrounding the artist’s street art, keeping fans and collectors on their toes and hungry for the next elusive masterpiece.
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