Portfolio managers constantly search for bargains. They are frustrated, however, by efficient financial markets which make bargains unlikely in conventional financial assets. But efficient markets may not extend to the more distant corners of the investment universe. If so, bargains are still possible. The purpose of this paper is to argue that bargains may be found in various tangible assets, most notably art and antiques. On the basis of the informal evidence presented in this paper the unorganized art market appears to be an inefficient market where investors have a reasonable chance of making above normal returns.

Portfolio managers constantly search for bargains. They are frustrated, however, by efficient financial markets which make bargains unlikely in conventional financial assets. But efficient markets may not extend to the more distant corners of the investment universe. If so, bargains are still possible. The purpose of this paper is to argue that bargains may be found in various tangible assets, most notably art and antiques.