To avoid financial crisis, regulation and supervision seem to be necessary and are in fact implemented. But, Â is nemesis excluded?
The worth of a business is not the real value of its aassets at todaÂ´s prices but what others are willing to pay for it under todayÂ´s expectations.
Take the AFINSAÂ subsidiay which quotes in the NYSE. It fared very well as a firm specialized in art auctions andÂ trading. Now it is one of the mostÂ Â volatlile listed value even after having experienced a one shotÂ deep drop.Â
It is volatile because AFINSA has been intervened, not the other way around.
The protection of investors may require a different kind of intervention.
The moral for Art is inmediate. Art and regulation doÂ not fit together.
This is one of the resons art funds were never sucssesful. If nevertheless you insist in organizing them ,supervision and protection of the investor will be requested. If granted nemesis might ensue.