Carried Interest

Money Culture: 124 Reasons to Short David Bromley

   

Copyright David Bromley | credit Tom Mathieson Gallery

It's hard to pick a better barometer for the financial crisis than the health of the contemporary art market.  Along with Porsche Boxsters and Rolex watches a painting by a "cool artist" sits near the top of every investment banker's bonus day wish list.

In Australia, David Bromley was the younger investment banker's must have artist.  After all, if you're a 25-year old Macquarie gun, an excuse to put a topless supermodel on your wall and call it culture is hard to beat!

Actually, I like Bromley's paintings, especially his Boys Own adventure pieces which remind me of the Famous Five books I read as a lad.  He's been a finalist four times in the Archibald prize and is consistently named as one of the 50 most collectable artists by Australian Art Collector Magazine.

But here's the thing.  I did a little online research.   I found eight galleries that sell Bromley's art (the big three are Tim Olsen, Jan Murphy and Scott Livesey) and across the stock rooms of all these galleries I counted 124 of his works currently for sale.  124! 

Supply and demand David, supply and demand.  You rode the boom brilliantly but now it's time to plan for the long term.  Take a year off, slow your production rate right down . . . and stop churning out the the titty portraits, that market is as dead as the 2009 UBS graduate intake. 

[Download an article about David Bromley:  Download Bromley-insideout-mar07].

Realistic Market Expecations

According to Fidelity International, over the past 100 years Australia's ASX has been the world's best-performing stockmarket, with an average return of just under 12% gross and 7.6% real.

100 years of data . . . world's best performing market . . . 7.6% real return.  A bit sobering for a generation of investors who have come to expect 20%+ returns.

Enron, Tyco . . . Harrods

Years ago I ordered a Harrods Christmas hamper for a relative living in London.  Harrods is obviously not big on mailing list purges, because over a decade later the catalogue keeps on coming.

This Christmas I think the £5,000 Chairman's Choice is the way to go.  After all, it includes a bottle of Penfold's Grange, so it's good for Australia. 

But seriously, who buys these things?  And how many does Harrods sell each year?  £5,000!  That's about 12,000 Aussie dollars.

I'd love to watch a board of directors attempt to justify this hamper.  Or to hear a customer explain how they accepted this gift and retained a shred of integrity.

Yes, I know.  Just pathetic, bitter envy.  Come on you bloody lawyers and accountants, I give you enough business . . . where's my Chairman's Choice?  I deserve my Chairman's Choice.