Financial Analysts Journal· 2026Q1
All Investments Lie on a Spectrum Defined by Utilitarian, Expressive, and Emotional Returns: Stocks, Bonds, Houses, Paintings, Coins, Even Handbags
- 0citations
- Q1SCImago
- 2026year
Short summary
All investments, from stocks and bonds to art and collectibles, can be understood on a spectrum defined by utilitarian, expressive, and emotional returns, not just utilitarian ones.
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Key points
- Investment returns can be categorized into utilitarian, expressive, and emotional dimensions.
- All investments, including traditional financial assets like stocks and bonds, offer a combination of these three return types.
- Investment behaviors such as holding onto losing assets or investing based on personal values reflect the influence of expressive and emotional returns.
- Distinguishing genuine preferences for expressive/emotional returns from errors is crucial for financial advisors.
AI-generated from the title and abstract; the full text is not read.
Abstract
We ordinarily differentiate investments such as stocks and bonds from investments such as paintings and coins, perceiving stocks and bonds as providing only utilitarian returns and paintings and coins as also providing expressive and emotional returns. I argue that all investments and investment behavior lie on a spectrum defined by the three returns. I illustrate my argument with examples such as the reluctance to realize losses, the practice of investing according to our values, and the persistence of dollar-cost-averaging. I distinguish preferences for expressive and emotional returns from expressive and emotional errors and discuss their implications for the work of financial advisers.
The authors' abstract, as published at the source. Financial Analysts Journal, 2026 · DOI ↗
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Field: Visual Arts and Performing Arts
Visual Arts and Performing ArtsArts and Humanities