Christie's sold Jackson Pollock's drip painting *Number 7A* (1948) from the collection of S.I. Newhouse for $181 million, the top lot of the $2.5 billion May auction season in New York. However, analysis shows the work's annualized return of about 6.6% over 26 years underperformed a passive S&P 500 investment, which would have grown to roughly $240 million in the same period. Many other major lots also sold at significant losses compared to their previous auction prices, including a Pollock work on paper that fell 40% to $9.2 million, Andy Warhol's *Sixteen Jackies* down nearly 40% to $16.2 million, and a Warhol *Double Elvis* that lost almost 30% for billionaire Lorenzo Fertitta.
The article matters because it challenges the long-held narrative that blue-chip art is a reliable investment asset class. By comparing returns on iconic works to basic index funds and documenting widespread losses even at the top of the market, it suggests that art as an investment no longer matches market reality. Veteran dealer David Nash is quoted advising collectors to buy out of love rather than investment potential, calling the market "ultimately a gamble." This analysis has implications for collectors, auction houses, and financial advisors who have promoted art as an alternative asset.