The big art world news of the day: Edvard Munch’s The Scream sold for $120 million last night!
That reminded us to check out the infamous chart of Sotheby’s (which has the clever ticker: BID).
It’s infamous because the stock has a tendency to make sharp peaks right before big recessions.
It’s so hyper-cyclical, it’s ridiculous. And that’s not a surprise, since the auctions at Sotheby’s represents the ultimate in unnecessary luxury indulgence.
So anyway, what’s interesting is that it recently peaked and fell sharply (falling from over 50 to 30).
It looked like the pattern was repeating and that the chart was auguring a new recession. But it has bounced back sharply, jumping from 30 to 40.
So basically it’s totally confusing at this point… just like most other indicators out there right now.
Click to enlarge.
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