Is it Time to Invest in Wine with Marcus Allen of Cult Wines
This show was published 01 October 2022
In this second interview we dig deeper into fine wine investing in a time of high inflation and rising interest rates. Interestingly, fine wine is not so strongly correlated to the equity market as some other physical assets and is less volatile than stocks & shares. Take, 2020 - equities were down sharply in March and then saw a big rebound later in the year, so strong growth overall. Meanwhile, fine wine finished the year 2020 6% up but was less volatile, being diversified and uncorrelated to equities. Wine is a passion investment though and typically, might only be 5-10% of an investor's portfolio.
Data shows through recessionary times, the fall in wine has been less than in other markets - there is a lower downside risk, less likely to crash, in the way that stock markets can. Within wine itself, it is better to have a blended portfolio of wines from different regions and countries and Cult Wines target 8% growth for their clients, after fees. They have achieved this as an annual average since 2009.
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