Investigations tend to distract people from the simple joys of life.
So as the art world moves toward its busy season, buyers and sellers — as well as the just plain curious — are probably wondering if Stephen A. Cohen’s possible trouble with the law might keep him from adding to his enormous collection.
Cohen runs hedge fund giant SAC Capital Advisors, several of whose former and current employees are being probed for insider trading. Neither Cohen nor SAC has been accused of anything, but the gossip on Wall Street is that federal investigators are turning up the heat.
A spokesman for Cohen wouldn’t comment on his art collection or the investigation. But this much is clear: The pressure and the publicity is building around Cohen. So does that make him a buyer, seller or holder of art?
“The market is very large and very international,” says Allison Rodman, head of communications for The Armory Show, a huge contemporary art exhibit that takes place in Manhattan in March. “But one player can affect sales in theory.”
Sources in the art world say Cohen already has an $800 million collection that includes paintings by Jackson Pollack, Roy Lichtenstein, Andy Warhol and Monet.
In past years, whenever an anonymous someone purchased a work of art for an exorbitant amount, Cohen’s name would always come up as the possible buyer.
Cohen often makes private purchases, these sources add, preferring to deal directly with owners. But he also takes part in big public auctions held by the likes of Sotheby’s, Christie’s and Phillips.
That last transaction method — auctions — is what the art world needs to know about. If Cohen isn’t an active buyer willing to pay top dollar, the price of art, which many consider a trusty hedge against inflation, could be hurt. If Cohen decides to sell works, which is unlikely at this point, prices could be hurt even more.
There’s also the chance that Cohen might decide to become an even bigger art buyer. What better way to spruce up a jail cell, and confound government investigators looking for liquid assets, than to purchase a nice piece or two of abstract art?
Mark Winter, director of Art Experts Inc., thinks the market will weather Cohen’s dilemma. “The market is very broad today,” he says, adding that there are individual buyers in Brazil, Germany, China and Korea that will easily pick up any slack.
Boy, I hope so! I’m looking forward to the day when paint dribbled on a canvas costs more than replacing the Tappan Zee.
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State of the Union speeches are boring and predictable.
Tonight President Obama will overstate the good things happening in this country and play down the bad. He’ll talk about the economy, jobs, nuclear weapons, guns and a bunch of other stuff that will have people switching channels to reruns of “The Big Bang Theory,” which is a very funny show
And he’ll make promises that — like New Year’s resolutions — will be forgotten before the next sunrise.
I can’t stop any of that. But I think the president could make his speech a little less boring with a few good opening lines. Here are some suggestions:
* “Hello. Just to show the National Rifle Association that I really do like guns, I brought my AK-47 with me tonight. Don’t worry, the magazine is only half full. If anyone in the audience has any clay pigeons, please toss them in the air now.”
* “Welcome. I have to apologize. I have the flu. But in the spirit of bipartisanship I’d like all the Republicans to come up here after my speech and give me a big hug.”
* “I’m going to let Joe Biden give the State of the Union speech tonight, because I’ve decided that what this country really needs is a few laughs.” ï® ï®* “I’d like to announce tonight that as part of the budget-cutting process, I’ve decided to let all the White House staff go. Michelle and the girls will clean the place on weekends, and I’ll do the laundry on Tuesdays.”
* “I’m not really ready to give a speech right now. So I’m asking Congress to give me a short-term extension — maybe until May of next year or so.
* “Hello, everyone. I’m going to be honest with you tonight. I really don’t care what any of you think about anything. I’m here for another four years, and you are just going to have to deal with it.”
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The National Association of Realtors reported recently that existing home sales dropped 1 percent in December from the prior month. And it said prices continued to rise because inventory of homes was thin.
Mostly good news, right?
Well, maybe not. Prices are not necessarily rising because Americans are ready to spring for a house. Homes seem to be going to investors, including many foreigners, who now see real estate as one of the few areas in which they can get a reasonable return.
The other bad news: That tiny 1 percent drop in December sales was really a more substantial 3.1 percent when you look at the raw, not seasonally adjusted, figures.
Sales of new single-family homes declined 7.3 percent at a seasonally adjusted annual rate.
Why are existing homes selling better than new ones? Probably because investors are more interested in picking up a bargain foreclosed home than having to deal with builders that aren’t flexible on price.