How to recession-proof your portfolio: restructure your investments in these uncertain times
Wine and spirits auction sales exceeded $118 million at Sotheby’s Wines, up 20 percent over the last year and a record high, revealing a healthy appetite among investors.
In times of uncertainty and distressed markets, diversifying your investment portfolio reduces your risk - allocating investments among various financial instruments, industries, and other categories means you're not over exposed to any one asset.
For those who don’t know, Ding Hong was the most successful wine fund ever, and a 2nd phase has just been confirmed. The best performing wine fund has been dormant for 9 years, but its now making an exciting come back!
Some of the most lucrative investments increase their value with age, and vintage fine wine is no exception to the rule.
A survey by Barclays Wealth and Investment Management as detailed in the Telegraph article 5 Fine Wines that beat the FTSE'
Italian 'Super Tuscans' sub wine market - for a diverse and robust Wine Investment portfolio.
Italian Wine producers in Piedmont and Tuscany can breathe a sigh of relief, as one door is left ajar on premium & Vintage French wines, another door opens wide, making investing in the fine wines of Italy an opportunity you just can't ignore.
You can thank Donald Trump and his ongoing crusade to level the playing field with trade tariffs with other countries around the world. The US has now imposed a 25% tax on bottled wines from France, Spain, Germany and Britain, under 14% abv. This will forge a broadening of the wine market in 2020 with some new winners on the horizon.
Towards the end of a stock market cycle interest switches from ‘growth stocks’ to ‘value stocks’, as profitability diminishes with the onset of economic slowdown.
In simple terms, when profitability is abundant investors chase the price of profitable (growth) companies higher and higher, on the basis that profits will continue rising forever. Then when profits become harder to come by they sell them and buy companies where (usually lower but more stable) profits exist. Utilities and so on.
Why do individual investors often ignore lucrative assets and opportunities?
So, What Will The Wine Market Look Like in 2020?
According to the history books, fine wine is one of the most best performing assets of the last decade. However that doesn’t mean that the market never changes. Consumption and demand varies from country to country and emerging trends can often drive up the price of certain wines.