Skip to main content

Please enter a keyword and click the arrow to search the site

Investing in emotional assets

Journal

Financial Analysts Journal

Subject

Finance

Publishing details

Financial Analysts Journal 2014 Vol 70:2 p 20-25

Authors / Editors

Dimson E;Spaenjers C

Biographies

Publication Year

2014

Abstract

We review the long-term investment performance of three important categories of emotional assets — stamps, art, and musical instruments. The long-run returns on these collectibles have been superior to the total return from government bonds and Treasury bills (and gold), at least before taking into account differences in transaction costs and other expenses. However, the price volatility of emotional assets is larger than is suggested by the standard deviations of price indexes. The investment risk is further augmented by collectibles’ exposure to fluctuating tastes and fads, and their vulnerability to frauds. Finally, indirect investment in emotional asset markets comes with its own set of problems. The available evidence thus indicates that an investment in collectibles should not be considered lightly. However, even if collectible emotional assets are dominated by financial assets in their risk-return properties, they can still be rational purchases for individuals who derive pleasure from owning them.

Available on ECCH

No


Select up to 4 programmes to compare

Select one more to compare
×
subscribe_image_desktop 5949B9BFE33243D782D1C7A17E3345D0

Sign up to receive our latest news and business thinking direct to your inbox

×

Sign up to receive our latest course information and business thinking

Leave your details above if you would like to receive emails containing the latest thought leadership, invitations to events and news about courses that could enhance your career. If you would prefer not to receive our emails, you can still access the case study by clicking the button below. You can opt-out of receiving our emails at any time by visiting: https://london.edu/my-profile-preferences or by unsubscribing through the link provided in our emails. View our Privacy Policy for more information on your rights.