Below is the press release on the art market financial results and a synopsis of the full report. The full report is available to subscribers of the Beautiful Assets Advisors site and the Mei Moses art indexes.
The Mei Moses press release on the tracking report states
Source: Beautiful Asset Advisors/Mei Moses Fine Art IndexINSIGHTS ON ART MARKET FINANCIAL PERFORMANCE THROUGH NOVEMBER 2014 BASED ON THE MEI MOSES® FAMILY OF ART INDEXES©
JIANPING MEI & MICHAEL MOSES SOME SIGNS OF STRENGTH APPEARED IN THE WORLD WIDE ART AUCTION MARKET IN NOVEMBER. EQUITIES FINISHED THE MONTH NEAR ALL TIME HIGHS.
SOME STRENGTH IN THE WORLD WIDE AUCTION ART MARKET APPEARED IN NOVEMBER ERASING THE PRIOR MONTHS YEAR TO DATE LOSS IN THE MEI MOSES® WORLD ALL ART TRACKING INDEX. THE INDEX IS NOW FLAT FOR THE YEAR. ART CONTINUES TO SIGNIFICANTLY UNDERPERFORM EQUITIES©
Our expanded data collection efforts provide sufficient and timely incremental data allowing us to analyze the world art auction market on a near continuous basis. We create monthly tracking reports for the Mei Moses® world all art index for the cumulative world wide sales that have transpired during the year up to the end of each month. We treat the sales in each successive year-to-date period as if they represented transactions for the full year. The figure on the first page shows the 2012 end-of-year value for the new index (set at a value of 1.0) and twelve alternative projections for 2013 end of year values based on the successive monthly sales. There are no auctions in August so we do not include that month in our analysis. The twelfth point becomes the true value for 2013 since it is based on all transactions in that year. This process is replicated for the current year.
The figure also compares the world art index with the monthly closing values of two total return equity indexes. We now also supply a three month moving average of the world all art index for those individuals who feel that the relationship between this average and the actual index, like the fifty day moving average in stocks, provides information as to whether it is currently a good time to make purchase or sale decisions. The fall auction season reaches its zenith in November. Our data collection and reporting efforts based on 48 Sotheby’s and Christie’s world wide auctions that occurred in November 2014 produced 712 repeat sale pairs from all of our seven collecting categories. These range from a small Old Masters (OM19C) sale to the major Post War and Contemporary (PWC) and Impressionist and Modern (IMPMOD) works of art sales in New York. There were also Traditional Chinese works of art (TCWA) sales in Hong Kong. There were also IMPMOD and PWC sale in Amsterdam and the major semi-annual American paintings (AMP) and Latin American Painting (LAP) sales in New York and British Painting (BRP) sales in London. The repeat sale pairs created by these sales allowed us to create the Mei Moses® world all art tracking index for November which produced the aforementioned flat result as compared to the closing value for year end 2013.
Strong results in the PWC and TCWA sales were dragged down by weak results of the IMPMOD and OLM19C sales which contributed to the flat index results reported earlier. The results show that even the excitement of major IMPMOD, PWC and TCWA sales could not jar the markets out of their lethargy and did little to reverse a continued lack of growth in the general art auction market. The three regional collecting categories AMP, LAP, BRP showed some signs of life yielding results similar to their
historical averages rather than the below average results of the last few years.
Please note that prior performance of our indexes does not guarantee future results. In addition, there is no guarantee that random collections of individual works of art or stocks will yield index returns. We are not financial advisors and we are not in the business of recommending art as an investment. We also have no comparative advantage in forecasting the future direction of the art market. Investment decisions should be based on the risk return tolerance and time horizon of the investor with, if desired the support of a licensed financial advisor. This information is provided "as is" and with no representations or warranties either express or implied of accuracy, merchantability, fitness for a particular purpose or of any other nature are made with respect to this information or to any expressed views presented in this information.
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