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Daniel Egan, Barclays Wealth and Investment Management behavioral finance specialist, on the rise of collectibles and treasure assets among investors.
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It thank you very and that's it get.
I'd -- collectibles for what some call their treasure assets has increased lately.
But our emotional -- financial innovators behind the rise Barclays behavioral finance specialist -- -- is here with more.
Dan this is really interesting to me and it has been for awhile often -- did a study nine point 6% of.
Well is being put into collectibles at least among the -- Absolutely so this study was inspired indeed requested by our client base was saying -- how should I think about my investments my art my classical cars my treasure assets.
And since the financial crisis many investors have been looking at I'm we consider alternative methods of diversifying their portfolio looking to balance out the risk return in new ways.
And Blockbuster returns we senior today haven't been you know been pushing -- a different.
I think the issue though is that when you're investing in treasure assets.
-- -- our higher probability that you're gonna experience behavioral biases -- -- about a mission more about how you care about them than the profit you can.
-- -- great because you know babe -- Jersey just went before.
For a four point four million Elvis -- watch went for fifty grand Marilyn Monroe's white dress from that at least seven -- -- -- four point six million dollars.
But what are the -- -- given resell that for equivalent price.
Exactly it's not just the sales price is also the fact that the ones that you hear about are the very unusual one -- much as -- selling for millions on.
These -- the things -- garner a lot of attention but the fact is as an individual investor you're not able to simply invest in the best performing art pieces.
You have to on the nearby a portfolio of them to think about.
How can -- buy how kind best ones that are you know right from -- I think about it I was -- -- that because like Michael Jackson's thriller jacket goes for one point eight million.
My kids could care less about you know his leather jacket so if that was something I held and I -- -- down to him.
But is that the best planning.
I'm absolutely not I had one of the things that we find is that dumb people who inherit treasure assets are the ones -- OK the thing is -- You still to paper insurance or storage or security and many of these things so there is a cost to having these kind of -- -- perhaps absolutely.
And indeed that's one of the things that people often do not factor in when they're looking at the purchase price of an asset.
-- so when you're considering in my gonna purchase this one of the great once we found was classical cars -- There's a small percentage about one out of when he high net worth individuals have classic cars.
-- and they can have a very high percentage of their wealth and 7% just in the cars think Jay Leno.
So quickly -- it because a liquidity issue to you can't flip on very easily as well but is something you recommend that wealthy people don't.
And we or anybody for that matter.
We think that they form a part of the the that individuals.
Corrects over old wealth solution I wouldn't call them an investment asset I don't think aircraft asset class.
But they are something that at the end of -- -- keep us happy.
Don't -- them.
I wouldn't mind having Zealand's car collection mediating and thank you very much journalists to get stuck RA that's --
