All of the Liv-ex fine wine benchmarks saw a stronger performance than the FTSE 100 and S&P500 in October 2018. Liv-ex has released its monthly performance review for October 2018 to trade members and it comes as no surprise that fine wine has outperformed international equity markets which have experienced the largest monthly fall this year during the month. Even the S&P500 is in negative territory as the US markets see the axe come down on the longest ever market bull run. The US mid-terms may have been a factor, and markets may settle now they are behind us, but these continue to be very uncertain times!
In terms of specifics, the S&P500 fell -6.9% and the FTSE100 was down -5.1% in the month, in comparison, the key fine wine benchmark, the Liv-ex 100 saw a -0.7% decline. This slight fine wine market dip in October does not reflect the fact that the total value of wines traded on Liv-ex was 18.7% more than September 2018.
Stronger regional performances also illustrated the value of being strategically selective when building a fine wine portfolio. For example the Liv-ex Burgundy150 rose 1.3%, led by a strong price performance by DRC Tache 2010 which saw prices rise by 25.3% in the month (scored 97 points by Antonio Galloni). The California50 index also performed well with a monthly increase of 3%.
Uncertainty in mainstream markets continues to prevail with no end in sight to factors which may depress equity markets further in the coming months. Gold is on the rise with a 2.8% uplift last month and an indicator of investors seeking refuge in troubled times.
If you are considering investing in fine wine for the first time our Guide to Fine Wine investment provides a general introduction to the market and how to get started. For further information, a member of our team would be delighted to provide you with a more detailed explanation of our service and the specific wines currently available in the market to help you create a rewarding fine wine portfolio in line with your exact requirements. Call us on 0203 384 2262 or email firstname.lastname@example.org.