Wine & Spirits Investment Report May 2022

We’ve been having a superb year, most wines have increased in value around 15% in just 12 months. It’s been an amazing year, last year was also solid performance. 

The stock markets have been hit lately and also interest rates have been going up which will affect the real estate market. 

There’s a huge opportunity in wine investing right now because investors always look at putting money into safer havens when the stock market is falling. You should consider increasing the size of your portfolio. 

Interest rates will continue to rise. 

This will affect the property market. Property prices are already overpriced & went up too fast during the pandemic.  When any market rises too quickly it will come down also quickly.

Stocks are also overpriced, the same problem as real estate. It’s been a good run in the stock market but it is coming to an end. 

Fear is starting to set into the market. 

– Companies have been allowed to buy shares in their own company using cheap money from the banks with low-interest rates for way too long. 

They can’t sell shares to pay back the bank if their stock price plummets.

Some companies will get stuck with this. I expect a few companies to go bankrupt because of it. 

– As usual the bad news in the media will create more fear.  

When fear sets in, nobody wants to invest. Money then gets stuck with no flow. Usually investors run into hard assets like wine investing because it’s considered a safe haven to protect capital, but usually it means wine investments will go up aggressively. 

The dollar is weakening & American products will become cheap. But they’re already expensive compared to most countries.  

This is a weird one because inflation is making everything more expensive.  Two negative points don’t make a positive one. 

– We are long overdue for a correction, I could never understand how we were bullish during the pandemic.

A crash happens every 10 years usually. We should have had one around 2020. If it happens much later past the 10 year cycle, then it usually means a bigger crash. 

– Governments printed too much money to get through the pandemic. Now they’re even more broke than before.

– Someone has to pay back all the debt. They will call on the people to pay it back. 

Inflation is going to continue. 

Don’t forget In a recession, people drink alcohol. Hence wine investing is the best place to be right now.  

Protect your capital and give yourself a great chance to find solid profits. 

Did you get caught up in the recent stock market dip? 

Better to maintain cash and wait for the right wine investment to come along.