While economists may debate whether the global economy is in full recovery, one can see some positive signs in the activities of the wealthiest Americans.
For example, each week comes news of another record-breaking day on the stock market. At the same time, blue-chip fine art prices are in the stratosphere, with Francis Bacon’s triptych of Lucian Freud recently fetching a record $142 million at auction.
“They’re picking up Teslas and Ferraris and fine art, even though their companies are completely illiquid for the moment,” Glunt said. “To borrow a term from gambling, they’re ‘betting on the come,’ hoping they’ll have what they need when the big liquidity event happens in a couple or three years.”
Such individuals also need very high-limit umbrella policies. Glunt explained that “If they’re in a car wreck, the plaintiff will wait to sue until the IPO scores.”
Originally published on ThinkAdvisor. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.