Wine investors' spirits pick up as index hits new high

Wine investors' spirits pick up as index hits new high
Chardonnay-sayers proved wrong, as fine wine index hits new high after tanking in 2008
APR 23, 2010
By  Bloomberg
The fine-wine rally reached a new high in March, representing a full recovery from the downturn that hit the sector during the global financial crisis of 2008. The London-based Liv-ex 100 Fine Wine Index, which tracks the price of 100 of the most sought-after wines, finished the month at 265, which represents a 12% gain in the first quarter of the year. By comparison, the S&P 500 gained just 5% over the same period. The wine index has now surpassed the previous high of 264 set in June 2008. “The new high completes a remarkable turnaround for the fine-wine sector, which was hit hard by the global credit crisis,” said Liv-ex director James Miles. Prices fell by as much as a fourth immediately following the collapse of Lehman Brothers Holdings Inc., Mr. Miles noted. Indeed, from the previous peak in June 2008, the wine index fell to a low of 204 in December 2008, a 23% decline. That, in turn, had some wondering if fine wines were such a good investment. But in the past 18 months, prices have regained all of the lost ground. Last year, the wine index gained 16.2, while the S&P 500 gained 26%. According to Mr. Miles, Asian demand for top Bordeaux wines, particularly from Hong Kong and China, has caused prices to soar over the past 12 months.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave