Fine wine – a safe haven in uncertain times.

We live in unpredictable times for sure and the markets are responding with blue-chip equities taking the punches. Currency markets are also feeling the stress with Sterling bumping around in a nerve-jangling way! Of course, for the lucky few, there is money to be made in volatility but there are also losses and a stable safe haven can protect wealth when certainty is in short supply.

Liv-ex has published the fine wine market’s latest performance figures for the month of November 2018 and cumulatively, and compares against key financial indices and gold. It was a quieter month for sure, but on all Liv-ex benchmarks fine wine has outperformed the leading UK financial market performance. Over year to date, one and five year periods it has exceeded FTSE 100 and gold by a very significant measure. The run-away S&P500 of 6 months ago has dropped back into activity much more in line with other international markets and the broadest measure of fine wine – the Liv-ex 1000.

 

INDEX LEVEL

30.11.18

M.O.M (%) YTD (%) 1 year (%) 5 year (%)
Liv-ex 50 352 -1.1 -0.5 -0.6 18.6
Liv-ex 100 313 0.2 0.2 0.1 21.3
Liv-ex 500 319 -0.6 0.9 1.3 26.4
Liv-ex 1000 364 1.7 10.2 9.2 42.2
Liv-ex Investables 343 -1.0 0.6 0.7 23.9
FTSE 100 6,980 -2.1 -9.2 -4.7 4.9
S&P 500 2,760 1.8 3.2 4.2 52.8
Gold 1,239 1.1 -7.9 -0.7 2.8%

Source: Liv-ex.com 30thNovember 2018

Once again we point to the comparative performance of fine wine versus ‘safe haven’ asset gold and reaffirm our message that fine wine should be considered in a similar light for investors seeking stability and the ability to protect wealth during challenging periods.

At the 11thof December we are still witnessing ‘May-hem’ at Westminster and the ongoing Brexit debacle is intensifying with the worrying prospect of entering the New Year without clarity on the ‘EU deal’, a potential leadership challenge or general election and who knows what impact all of this will have on Sterling and the markets. It’s certainly worth looking for that rock in stormy seas!

For more information on investing in fine wine, download our Guide to Fine Wine Investment and speak to a member of the Vin-X team on 0203 384 2262.