Today King World News is pleased to share a fantastic piece which addresses the all-important question: Did we just witness the greatest sell signal in history? This piece also includes a key illustration that all KWN readers around the world must see.
By Jason Goepfert Founder & CEO Of SentimenTrader
May 15 (King World News) – Sales of massively expensive pieces of art have become common, with a new record set on Monday evening. Previous bouts of expensive art sales have indicated over-confident conditions in the stock market as well.
Reports on Monday evening that a Picasso artwork sold for $179 million, a new record, stirred up interest again that we're in a bubble-fueled environment.
As shown Monday, there isn't a lot of talk at the moment about a stock market bubble per se, but money has been flowing other places as well, skewing returns well outside of historical norms.
One of those is indeed in art. Art is even beyond investments like gold, in that it has little inherent value other than what people are willing to pay for it. And right now, people are willing to pay a lot.
This is unlike any other time in at least the past 30 years. The chart above shows a one-year sum of the 62 largest sales of art. It is adjusted so that everything is reflected in 1986 dollars, removing the skew from inflation. The instances were clustered in 1990, 2007, 2011 and the past year (see chart above).
There is broad overlap between the markets, now more than ever. Wealth concentration is near an all-time high, and with stocks doing so well, it has helped to fuel massive confidence in other "greater fool" markets like art.
Like any trend in an unhinged market, it's next to impossible to predict when the confidence will peak. Based on previous peaks, it could (should) be any time. The market is relatively isolated and a plateau in art prices wouldn't have much affect on broader assets, though it would likely be coincident with a plateau in stock and bond markets." The fantastic charts and commentary are just a portion of the latest remarkable report. To try a free 14-day trial of the internationally acclaimed work that Jason Goepfert produces at SentimenTrader simply CLICK HERE.
***ALSO JUST RELEASED: U.S. Launch Of QE4 To Trigger Frightening Bond And Currency Collapse, Hyperinflation And A Silver Move That Will Shock The World CLICK HERE.
© 2015 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
The audio interviews with Chris Powell, Andrew Maguire, Rick Rule, Bill Fleckenstein, John Mauldin, Michael Pento, Gerald Celente, Egon von Greyerz, Dr. Paul Craig Roberts, James Turk, Dr. Philippa Malmgren, Eric Sprott, Robert Arnott, David Stockman, Marc Faber, Felix Zulauf, John Embry and Rick Santelli are available now and you can listen to them by CLICKING HERE.