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Could Uncertainty in the Global Markets Boost Music Investments?
In recent weeks, global markets have been roiled by a series of unexpected events, from the US-China trade tensions to the ongoing fallout from the COVID-19 pandemic. While uncertainty can be unsettling for many investors, some music industry experts are suggesting that this turmoil could ultimately benefit music investments.
“This kind of market volatility often creates opportunities for smart investors,” says Kevin Liles, CEO and founder of KWL Enterprises, a company that has made significant music investment plays in recent years. “When people get nervous about the markets, they tend to withdraw their money or become more risk-averse, which can create bargains for those who are willing to take calculated risks.”
Liles notes that this phenomenon is not unique to the music industry, but can be observed across various sectors. “Markets like uncertainty, and we’re seeing it play out right now,” he says. “It’s all about finding value where others may not see it.”
The idea of increased investments in music assets is particularly intriguing given the recent uptick in investor interest in music catalogs, which have become a popular alternative asset class in recent years. These investments, often made through private equity firms or hedge funds, allow investors to own stakes in music libraries, which can generate passive income and potentially appreciate in value over time.
The prospect of increased investment in these assets could be particularly beneficial for the music industry, as it would provide a new source of capital to support emerging artists, producers, and other creative talent. “This kind of influx of cash could really help level the playing field for those who are just starting out,” says an insider with knowledge of several major deals.
Not everyone is convinced that this trend will play out in music investments specifically, however. Some argue that the music industry’s unique dynamics – including factors like streaming royalties and shifting consumer preferences – make it difficult to generalize broader market trends to this sector.
While some may be hesitant to jump into the unknown waters of music investing, others see the current uncertainty as an opportunity to diversify their portfolios and potentially capture value in this increasingly popular asset class.
Source: https://www.billboard.com/pro/could-uncertainty-global-markets-boost-music-investments/
