BloombergTVMichael NovogratzMichael Novogratz, the head of Fortress Investment Group, appeared on CNBC yesterday.
Among other things, he talked about what he considered to be an ongoing bubble in art.
“Art is 100 per cent a bubble—I mean it has all the markings for a bubble,” said Novogratz. “Prices have gone parabolic. You go to any of the art shows and you know even the cheap stuff that was $10,000 two years ago is now $80,000.”
Novogratz and the CNBC crew were responding to a story on the recent Sotheby’s auction where Barnett Newman’s “Onement VI” sold for a stagger $43.8 million.
“These $90 million paintings, you know, they might be worth eight one day,” added Novogratz. “They won’t go from 90 to 70, it will go from 90 to eight.“
Investors sceptical of traditional financial assets have flocked to alternative assets like art and gems in their efforts to store their wealth.