Before co-founding CapucinesBoulevard.com, I spent my career investing in small and micro cap value stocks which basically means the smallest and least expensive 5% of all public companies – and despite the fact that these were all well-run enterprises, most investors didn’t pay much attention to them — so, when I went to visit companies to learn more about their operations, many were pleased that someone was actually interested.

Most importantly, by spending the time to get information that other investors were ignoring, I was able to find opportunities that others missed. I believe that like small and micro cap value stocks, Emerging Artists are the greatest investment opportunities that no one has ever heard of.

 

Many people make the mistake of looking at art as something that’s nice to have, but that simply doesn’t meet the qualifications of a necessity. How wrong they are. 

Art happens to be the biggest unregulated, legal economy in the world to the tune of $64B worldwide, in fact, it grew 95% between 2002 and 2006 and, the truth is, as Robert Redford has said, “culture is a solid investment”

 

Make no mistake, art isn’ fluff. We live in an abundant country, and have pretty much taken care of all of our basic needs, and our culture places increasing value on creativity and innovation: the ideas that catch on today are those that represent conceptual leaps – they give us things that we didn’t know we were missing, not things we necessarily needed, but ideas that appeal to our creative natures.

 

Artists begin with an innate advantage in this new economy by their very ability to see and to think differently. And Art is becoming more and more intertwined with our daily lives: we can see it in the examples of corporations buying Contemporary art in order to attract and inspire their employees, and to highlight their brands to the world while giving something back to society — and these companies aren’t cutting back on their art buying despite what’s going on in the economy, because they’ve come to recognize how much the visual really drives our culture, and keeps them top of mind.

 

The other side of this new economy other than the art itself centers around the value of it — art should always be purchased for the joy it brings, but art is also an asset and if it’s bought for pleasure and gives the investment returns for free, what more could anyone ask?

However, when it comes to art, it’s contemporary art that’s in demand because even though people admire the Old Masters, what they want to own are representations of their own culture and time. Contemporary art is more topical and often more interesting and now, it’s becoming more valuable.

 

Art isn’t usually an asset that springs to mind when thinking of investment alternatives, but its long-term performance record argues that it should be.

For the last 50 years, contemporary art has outperformed the S&P 500, which means that someone who bought a portfolio of art would have done better than someone who invested in the stock market over the same time period. The same holds true during every major war of the twentieth century and through the twenty seven recessionary periods since 1875.

 

From an investment standpoint, and most important for Emerging Artists, is the fact that there is no greater advantage to buying more expensive works of art, buyers get the same returns buying artwork that’s never been exhibited or received any citations, as they would buying the work of artists with more notoriety. 

 

There’s truly never been a better time to be an emerging artist. With their power to inspire, and yes, to prosper, the record is quite clear: the VALUE is in work of the emerging artist.

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