Tactical and strategic investment in art

As investors shift their concern from weathering the financial crisis to anticipating the inflationary effects of rising government spending and debt, they are turning to art for tactical and strategic investment.

Many of the gains realised by high net worth individuals in recent years have been a result of strategic diversification of their holdings by moving into a broad range of asset classes.  Increasingly, sophisticated investors are looking to protect themselves from losses by emphasizing diversification within their alternative portfolios among various established and new types of strategies.

While many investment professionals agree that real assets like art provide diversification benefits, there has been surprisingly little research into the appropriate allocation in an investment portfolio. Art used in the right way can enable investors to better tailor their investment strategies to address specific financial and investment concerns (for example: controlling volatility, boosting returns, or hedging against inflation).

For more information on art as a tactical and strategic investment read our thought leadership article on Tactical & Strategic Investment in Art