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There's A Big Debate About Whether Booming Art Auctions Are a Warning to Investors

Is Picasso a leading indicator?

The art market hit a new milestone last week, with a record $2.7 billion sales frenzy and a single Picasso selling for $179.4 million, the highest price paid for any artwork at auction.

With nervousness over the health of the U.S. equity market already in full swing (the S&P 500 reached a fresh record last week, just days after Federal Reserve Chair Janet Yellen warned of "potential dangers" in stock valuations), the auction house frenzy seemed to breathe new life into the idea that we may be reaching the top of the current market cycle. Jason Goepfert, president of Sundial Capital Research, has a note analyzing the relationship between record art sales and the stock market.