Where the art market leads, the stock market often follows. If what’s been going on at Sotheby’s lately is any kind of indicator, there are hard times to come, says Ivan Lindsay
FOLLOWING THE RECENT two-week marathon of art sales at the leading auction rooms and a difficult three nights for Sotheby’s, the Sotheby’s share price has turned down, halting a breathtaking ascent that took it from its 2009 low of 7 to its recent high of 54 on the New York Stock Exchange. The fall took the share price down to 40, a loss of more than 20 per cent in a month and a half. In the past, such drops in the Sotheby’s share price have been an early warning of trouble ahead in the art market and also for the broader stock market.