Wine investment market March 2009
During March the wine investment market has seen an improvement of activity on the First and the Second Growth Bordeaux wines. Investors are definitely looking for other places to invest their money at the moment and we’re at the forefront of all the action as most people feel safer with their money in wine.
We have seen some of vintages of the great wines like Haut Brion and Lafite Rothschild rise between 5 and 10 percent in the last month. A few of the lesser vintages have even started increasing slightly again. There were some drops in some of the wine prices between October and December but that’s expected since the global recession hit us and the volatility the stock market is experiencing, there are many investors willing to play and lose all on the stock market. As the share market continues to stay volatile this is having a knock on effect and will continue to have a knock on effect to the wine investment market.
The latest news on HSBC falling short of 19 Billion Dollars on their balance sheet then announcing their need to quickly raise 19 Billion Dollars through a share offering incentive for investors was not good news especially for one of the worlds major banks. HSBC’s Share price has dropped 47% in the last six months. 12 months ago HSBC had a Market Cap of 220 Billion it is now down to 47 Billion.
The big news on the fine wine market is that the Chinese market is giving plenty of support to the Market where the European trading may have dropped compared to their involvement last year. This quarter is proving to be very rewarding if you want to take advantage of some bargains. The Japanese are taking advantage of the strength in the Yen against the Pound and also the strength of the Chinese Renminbi is making it very opportunistic for Asian investors to take advantage of fine wines that were about 25% higher several months ago.
Our Portfolio which is basically every recommendation we make to you that we have also invested in. The current return is 27%, though we haven’t made a fortune in the recent market conditions just protecting our capital and making a decent return is more than acceptable. Any investors that have managed to buy every recommendation through us so far are also enjoying this. There is a similar stand off in the wine market that you can see among the property market. Some investors wanting to sell refuse to lower their prices but there are some sellers who are lowering their prices way below market.
The trend of global Investors is leaning towards alternative investments given the state of the global stock markets and fine wine is considered an alternative investment.
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