Using up to 110 years of collectibles returns for 13 distinct asset classes, Elroy Dimson and others estimate a positive emotion yield for emotional yield for 24 of our 30 collectibles, with an annualized mean (median) of 2.64% (2.53%).
Emotional Yields of Collectibles
Research
100 Pages
Key Takeaways
Emotional Yield: The emotional yield is the difference in expected financial returns, which makes the investor indifferent between owning the collectibles and the factor mimicking portfolio.
Privates: Private-domain collectibles carry much larger emotional yields than public-domain or specialist-domain collectibles.
Fractional Ownership Platforms: Their analysis suggests this model is structurally flawed. Because the underlying assets are priced to yield a significant non-pecuniary dividend, stripping this benefit away leaves the fractional investor with a sub-market financial return.
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