Hint: investing in art.
Recently, more than three in four Americans report feeling nervous about their financial situation, according to Capital One Bank. That’s not surprising since we’ve just seen the highest inflation rate since 1982 and recently entered correction territory in the stock market.
And while most cash holders and stock investors are panicking, the ultra-wealthy are doing something different to protect themselves. Over 81% of ultra-high-net-worth clients, surveyed by Ernst and Young, are diversifying their portfolios with alternative investments, for a good reason:
Alternative assets are a growing $9 trillion market and are projected to be a $21.1 trillion market by 2025 according to PwC. Some alternative assets can have a low correlation to the stock market, and can be helpful hedges, in certain circumstances.
For example, an alternative asset like contemporary art prices appreciated 22.1% on average when inflation is at least 3%. And it outpaced the S&P 500 by 164% from 1995 to 2021.
However, in the past, some alternative assets, like art, were restricted for the ultra-wealthy.
Billionaire hedge fund manager Steve Cohen could afford to spend $100,000,000 on a Picasso, but most investors don’t have that kind of capital.
Luckily, due to recent legislation, Masterworks.io, a tech-enabled platform valued at $1 billion, allows everyday investors to access art in their portfolio...
Currently, the art investment platform has over 300,000 members and is quickly growing. Why are so many people using Masterworks.io to access this asset class?
First, Masterworks investors saw a 32% net price appreciation from selling a Banksy painting.
Secondly, investors can buy shares representing an investment in paintings by Picasso, Banksy, and Warhol for as little as $20. That’s much less than the $1,000,000 or more you’d need to invest in similar works.
Third, Masterworks is also the only art investment platform that allows investors to get a piece of whole artwork from famous artists without investing in the entire painting.
Scott Lynn, the CEO of Masterworks, has been a serial entrepreneur for over 20 years. In 2017, after collecting art for more than a decade, he realized the potential and high financial obstacle preventing everyday investors from participating in this market… he created Masterworks intending to democratize art investing.
Masterworks has since become the most prominent art investment platform for everyday investors. Signup is required to invest in the Masterworks platform.