11 October 2023
September 2023 Flash Report - Fine wine downturn slows down
Cult Wines Indices – Returns as of 30th September 2023
Source: Pricing data as of 30 September 2023. Cult Wines Indices are an objective measure of the global fine wine market based on Wine-Searcher pricing data and rebalanced annually based on strict liquidity criteria. Prices calculated in GBP and results may vary in other currencies. Past performance is not a guarantee of future results.
Fine Wine markets continued to stabilise in September with another month of flat performance amongst mixed trading across regions. Cult Wines Global Index was stable at -0.01%, bringing the YTD slump to -3.90%.
Whilst it might be too early to call for the end of the correction experienced since beginning of the year, the outlook for inflation and rates seems to have improved on the macro side and some interest has come back to the asset class driven by bargain hunters.
Macro market summary
Source: Investing.com, Wine-Searcher as of 30 September 2023. Past performance is not indicative of future returns. *Volatility = Rolling 5-year standard deviation of monthly returns.
Stock markets and other risk assets had a tough month despite falling inflation, it is perceived that rates across the globe will be higher for longer. Expectations of rate cuts in 2024 are now curtailed and economic growth and employment data remained healthy in the US.
UK stock market bucked the trend as it was supported by banking and energy stocks: interest rates and oil price rises benefited both.
Concerns about Chinese economy and the wider pacific region weighed on shares in Asia.
In Fixed Income, 10y government bond returns were negative across developed markets as yields rose over the quarter: US 10y – 4.61% and Germany 10y – 2.93%.
Commodities saw oil up by 10% and Gold declined by 5%.