It won’t be long until a stock market phenomenon called the Santa Claus Rally is forecasted to take place, whereby stocks historically perform well during the week before Christmas.
There are several theories behind why this happens which range from a general sense of happiness and well-being amongst traders in the runup to the festive season as they invest their Christmas bonuses to a lull in activity from the larger more pessimistic institutional investors leaving the more bullish general-public and retail investors to have a positive effect on the market.
Read on to learn more about how investing in art can impact the art world, as well as some of the reasons to invest in art around Christmas time.
The Art Market Around Christmas
So, what does this mean for the art world? Well, we know that the art market does not correlate with the stock market so a positive or negative fluctuation in one market doesn’t necessarily result in a similar movement in the other.
However, there are several very important factors to consider from the Santa Claus Rally phenomenon as detailed above. Where do traders invest their Christmas bonuses at the start of a recession?
Yes, I am sure that a significant level of capital will be invested in the stock market at this time. However, everyone working in the financial markets from the CEO to the newly hired fresh-faced university graduate will be adopting strategies to mitigate risk which will result in traders and investors seeking out alternative investment strategies.
According to Investopedia.com, alternative investments are investments that do not fall into the traditional categories of stocks, bonds and cash. They do, however, include property, private equity, venture capital, hedge funds, managed futures, commodities and art.
These are the investments to take advantage of around the time of the Santa Claus Rally. Download our art investment guide or talk to one of our advisors today to find out how you and your investments can have a Happy Christmas this year.
Why Invest In Art At Christmas?
One of the main reasons why people choose to invest in art around the festive period is to gift art to their loved ones. Buying art doesn’t have to be for the sole purpose of selling it for profit; art is something that can be enjoyed.
Many people choose to purchase a piece of art for a loved one around Christmas as an heirloom – something that can be passed down for generations. Art is something that may increase in value over time, as well as something that can be enjoyed.
Art tells a story and can be a conversation piece in your home – and will exist long after you are gone. Invest in art with Grove Gallery today – we are also home to an impartial art advisory service, giving you the best chance of a successful investment.