Walk On By

And the walking man walks
Doesn't know nothing at all
Any other man stops and talks
But the walking man walks on by
Walk on by

"Walking Man" by James Taylor

Oops, in my last post I forgot to add the latest on the debt issues closer to home, namely Harrisburg, PA.

Harrisburg is considering Chapter 9 bankruptcy protection along with tax increases and asset sales as options to address $68 million in debt service payments due this year.

Every option, including tax and fee increases, bankruptcy and a state takeover through Pennsylvania's Act 47 municipal oversight program will be considered, said Susan Brown-Wilson, chairwoman of the Budget and Finance committee. 

If you have any municipal bonds issued by Harrisburg please contact your advisor to review your exit options while you still can, and just "walk on by". 

On a much happier note, the Alberto Giacometti 1960 statue "L'Homme Qui Marche I" ("The Walking Man I"), sold at a Sotheby's auction for a record $104.3 million.

Not only does this show that with interest rates near zero investors are willing to pay top dollar for art, it is a huge win for the Carnegie Museum here in Pittsburgh. You see Giacometti made six numbered bronzes and four artist proofs, and the Carnegie has bronze number 1. Yes that's right, you can walk into the Carnegie and see the worlds most expensive piece of art. The museum purchased the piece in 1961 for a low five figure sum and has had it on display ever since. What was their return on that investment? Let's assume they paid $25,000 in 1961. If it is now worth $104.3 million that is a compound annual return of 18.5% for the last 49 years!! The only downside is that the museums insurance costs just went way up.

Congrats Carnegie. 

Chris Wiles

www.rockhavencapital.com

This article contains the current opinions of the author but not necessarily those of the Rockhaven Capital Management.  The author’s opinions are subject to change without notice. This article is distributed for informational purposes only. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.