-- I was surprised by how ham-handed the writing was.
-- When you think about it, all the report really says is that in the short term, the rich will get richer, which is very likely true and also likely to keep them investing with the help of Citi. (which, my ex told me is pronounced "shitty" in Japanese.)
-- I don't think the tea party is the biggest threat to Plutonomy.
-- The stuff about art was priceless.
"...Later in the day, we were joined by ...Dr. Iain Robertson, of Southeby's...who is an expert on art as an investment class...
Investing in art feeds into the 4th reason for investing in luxury products..."I want others to ask me about this." ...In addition to providing the often sought out mystique of wealth, art is literally a tangible asset and acts as a safe heaven, making this market unique from any other investment product. The market itself is likely the most unpredictable of markets (an investment will literally be "en vogue" or not and it is hard to determine when a product will fall in or out of fashion) and as no two products are exactly alike, the difficulty in pricing increases the perception (and reality) of exclusivity. If you have it, no one else can possess the same thing. Art also appeals to the human psyche in acquiring "more and better".
As it is considered the pinnacle of luxury products, there are hierarchies within the individual collectibles market, beginning with rare vintages and graduating up to paintings. One drawback to this investment class is the risk of illiquidity, though a repeated theme throughout the day from the experts was that "rich people don't need liquidity -- they already have it".
There you go. The mysteries of the universe, revealed.
Joanna