With the current turmoil in the banking sector, this has had ripple effects across other industries. Will fine wine get affected? Read on to find out more.
Banking Crisis & Fine Wine
A lot of fear & uncertainty in the economy, is it affecting the wine market?
Bank insolvencies, liquidity problems and high interest rates are plaguing financial markets. Despite the stock market still quite high. It looks like a difficult outcome for the economy based on the latest stream of bailouts & buyouts within the banking sector.
Fine wine investment had a slow start to the year, but still maintains its values across regions. There may be some drop off in the Champagne market which has had strong growth in the last few years.
Despite a dip of 1% across the wine market there are buyers looking for good deals to bolster their portfolio during uncertain times.
If history is a repeat, the run up to the 2009 economical crisis, saw wine rise significantly in price. Then after the collapse in Nov 2008 wine prices did fall, yet it was the first market to recover. This led to a rally in fine wine.
This time things look a little different, the wine market has not risen in line with inflation, it has had modest growth. This leaves a lot of potential for growth in the next 2-3 years.
Cash is king in a downturn economy & wine is a strong asset class due to an ever decreasing supply and limited production. It works well to protect your capital in turbulent times. First growth Bordeaux are always a liquid market.
A diversified wine portfolio can give you the security you need when there are not many places to invest in a market troubled with fear and uncertainty.
Kind regards
James Pala
Europe’s No 1 Wine Investment Analyst
Compare the Invest Into Wine Index with the London Vintners Exchange Index and the world’s stock markets in the table below.
Performance for 2023 |
Year to Date |
|---|---|
|
Invest Into Wine Index
|
- 1.30%
|
|
Liv-ex Bordeaux 500
|
- 1.00%
|
|
Dow Jones
|
- 1.05%
|
|
Nasdaq Composite
|
+ 10.60%
|
|
UK FTSE
|
+ 5.79%
|
|
Shanghai Comp
|
+ 6.05%
|
Our expertise is in sourcing the best investment wines according to your budget & strategy. Contact us if you wish to increase the size of your portfolio and grow your future.
Be the best investor you can be by investing in fine wine for your future.
If you are selling wine?
Sell only first growth wines from your portfolio at year end. Other regions tend to be slower at the end of a bad year for the economy.
What are the best investment wines to buy now?
Buy what is cheap in the market at this period of the year. Look for the bargains, below market stock that can set you up for a good start to a profitable year in 2023.
The Figures for March
This month’s valuations showed the Bordeaux market has decreased by -0.14% for the month. Champagne and Rhone Valley wines have remained at 0.00%.
34.5% of the wines valued showed a positive return, while 27.0% showed a negative return and 40.5% remained the same.
81.5% of our portfolio is Bordeaux while 13.2% is Champagne and Rhone Valley, with Whisky investments & others make up 3.3%
The overall change for ALL the wines valued this month was DOWN -0.13%
Below are the five, top and bottom movers compared to the previous month. Over 100 wines are valued each month. The wines valued are ALL OUR recommendations from the last fifteen years.
The new prices are reflected in your online portfolio every month.
Please log on to our website SureHoldings.com to view your wine portfolio and email us back if you wish to ask anything about which wines that can help build your wine portfolio.
Yours Sincerely,
Client Services
Did you know we offer a full bespoke service?
This is how your portfolio is managed.
- Wine Research – Source and negotiate new wines.
- Portfolio Analysis – Assess your portfolio for wines that need to be sold and allocate new wines to your portfolio.
- Logistics – Manage the delivery and receipt of wines with new buyers and sellers into the Bonded Warehouse in UK and France.
- Billing – Monitor funds from your wine sales and bill new wines to your portfolio to ensure an efficient cash flow to maximize your invested funds.
Read more below:
Investment Statement Discretionary investment managed portfolio
Discretionary Investment Managed portfolio Agreement
Questions?
