After a solid but slower end to 2022, fine wine appears to be at something of a crossroads at the start of the new year. In this environment, our outlook is two-tiered: relative stability in the near term and a more favourable long-term view.
Ultimately, diversity and selectivity will remain essential for sustained performance especially if there is a moderation in the pace of the rally in core Burgundy and Champagne regions.
Fine wine should sustain positive performance and reduce the volatility of an overall investment portfolio, especially as there are few other places to turn amid high inflation and slow growth.
However, caution is warranted as long recessions in multiple countries would likely impact wine consumption, denting the performance potential of the investment and collector market.