This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Digital Skeptic: What If the Art Market Was the Model for All Markets?

Learning to slow down.
So how does the art market work when financial markets don't? Easy. Insiders confirm there is no digital-age attempt to nickel and dime the trading system with illusory, data-driven efficiencies.

Rather, the art market functions as any market really should: one deal at a time.

"The system works because the major galleries behave like market makers of the old New York Stock Exchange," Maneker explained. "They go out and buy work of artists they believe in. That gives investors the confidence that art will have value."

That process of actively protecting each trade slows trading down and lets participants separate the noise, such as fake tweets and flash crashes, from the value.

"The process moves slowly. Everyone can get in touch with their emotion for the art," Lelong-Mainaud said. "That way, the passion can come out in the price."

Considering the upside lurking in the art market, and the nightmare our financial trading systems has devolved into, how much worse would asset pricing and execution really be if equity trading aped art trading? That is, if stocks were exchanged in transparent trading servers supported by private market makers -- probably the issuing companies themselves?

In a world where Apple (AAPL) can make its own market in its own stock, what on earth do we need larger stock markets far?

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
SYM TRADE IT LAST %CHG
BID $45.27 0.00%
AAPL $131.39 0.00%
FB $80.48 0.00%
GOOG $542.51 0.00%
TSLA $245.62 0.00%

Markets

DOW 18,285.74 +0.34 0.00%
S&P 500 2,130.82 +4.97 0.23%
NASDAQ 5,090.7940 +19.0510 0.38%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs