Sotheby's Developing Strong Tailwinds: Karen Finerman
With prices at the pump expected to spike during the months ahead – money pros are growing ever more interested in high end stock plays.
The theory is – affluent consumers won’t adjust spending patterns much if at all, even if gas prices climb to $4 or $5 gallon.
But what’s your best high-end pure play?
Top trader Karen Finerman says it’s Sotheby’s.
As emerging nations come into their own, “there are just more and more wealthy people around the world,” she says.
“There are 74 billionaires in Moscow alone,” adds trader Tim Seymour.
Of course you can argue that a great number of high net worth individuals benefits all high end stocks, not just Sotheby’s. Finerman, however, sees other – perhaps even more powerful catalysts.
1) Among the rich, “Art is now considered a store of value. Investors are looking all around the world for things to own; things such as gold and paper currencies. Art is becoming an accepted store of value. That’s an incredibly macro-dynamic," she says.
2) Also she likes Sotheby’s because it’s one of only two companies that dominate the auction industry. The other is Christies. “It’s effectively a duopoly. The competitive dynamic is fascinating and favorable,” says Finerman.
Got something to to say? Send us an e-mail at firstname.lastname@example.org and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to email@example.com.
Trader disclosure: On Feb 23, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Finerman is long AAPL; Finerman is long BAC; Finerman is long JPM; Finerman is long HPQ; Finerman's firm is long AAPL; Finerman's firm is long JPM; Finerman's firm is long HPQ; Finerman's firm is long WMT and short calls; Seymour is long BAC; Seymour is long INTC; Seymour is long CSCO; Adami is long C; Adami is long GS; Adami is long INTC; Adami is long AGU; Adami is long NUE; Adami is long BTU; Adami is long MSFT; Kelly is long TLT; Kelly is long US Treasury bonds
For Shaw Wu
(HPQ): Sterne, Agee & Leach, Inc. makes a market in the shares of the subject company
For Abe Reichental
For Connor Browne
Thornburg Investment Management owns AAPL shares
For Bill Lefkowitz
For Paul Sankey
(OXY): Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from this company within the past year. This company has been a client of Deutsche Bank Securities Inc. within the past year, during which time it received non-investment banking securities-related services.
(MPC): Deutsche Bank (and/or affiliates) owns 1% or more of any class of common equity securities of this company and company is an Investment Banking client of DBSI
(COP): Deutsche Bank (and/or affiliates) owns 1% or more of any class of common equity securities of this company. Company an Investment Banking client of DBSI. Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from this company within the past year. This company has been a client of Deutsche Bank Securities Inc. within the past year, during which time it received non-investment banking securities-related services.
(SM): Company an Investment Banking client of DBSI
CNBC.com with wires.