Office Hours: Change & Volatility Favor the Young, Investing in Art, And Why David Solomon’s DJing Hobby Is a Good Thing

Art Market

The art market represents a significant asset class with an annual transaction volume of about $60 billion and a global value estimated at $1.7 trillion. Scott Galloway highlights that contemporary art, defined as art post-1945, has shown positive historical price appreciation, even outperforming the S&P 500 between 1995 and 2020 1. In 2020, despite the pandemic, the contemporary art market appreciated by 15%, making it a compelling hedge against inflation.

Contemporary art has outperformed the S&P 500. I read regularly that the best performing asset class of the last several decades has been art.

--- Scott Galloway

Scott notes that while he owns only a couple of pieces, the emotional and psychic returns from art can be more rewarding than traditional investments like treasury bills 1.

   

Art & Identity

Scott shares his personal relationship with art, expressing feelings of self-consciousness and intimidation when it comes to buying art. He reflects on his upbringing and how it influences his perception of luxury items, such as expensive wine and art 2. Despite these feelings, he acknowledges art as a fantastic asset class, especially if one can buy smart and derive emotional satisfaction from it.

I've always felt self-conscious about buying certain things. I feel as if I'm trying to pretend to be someone I'm not.

--- Scott Galloway

Scott encourages those who have the means and opportunity to invest in art, as it offers both financial and psychic income 2.