Premier Art Finance Artemundi Group / 2019 Premier Art Finance Artemundi Group : 201 | Page 34

N ew York · Lon d on · Mexi co City · M a d rid
ART AND ALTERNATIVE INVESTMENTS FOR PORTFOLIO STABILITY .
One of the most obvious benefits of
investing in collectibles is a relatively
low standard deviation in annual
returns, i.e., stability. Minimizing risk,
whilst maximizing returns, may be
achieved by combining stocks and
bonds with collectibles. Given the low
correlation to equities, in a long-term
portfolio comprised of different luxury
assets and traditional investments
alternative assets have the effect of
reducing overall volatility and risk.
10-year Asset Price Volatility
20
Volatility
15
10
5
Diamonds
0
*Based on annual price points.
© Knight Frank Luxury Investment, 2014
The results of the Kinght Frank Luxury Investments Index
(to Q4 2018)
40%
12%
9%
9%
0% 0%
1%
-5%
@Knight Frank The Wealth Report, 2019
2%
5%
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