Fine Wine Market Performance
Fine Wine has outperformed almost every other major financial index over the past two decades; below we have provided some market analysis of the long-term performance of fine wine.
Outperformance of FWI versus World Equities
The most convincing factor of the viability of fine wine investment to provide absolute returns to investors is that wine has produced positive absolute returns in every return single-5 year holding period since the first period in record (dec-09 to dec-14) except until the last two data points.
The forward 5-year return of Liv-ex 1000 follows a U-shape, with the highest forward rate of return at the end of 2008 and 2013 and the lowest return during the period of 2010 – 2011. As expected, the fine wine market has consistently delivered a positive absolute return over any 5-year return. More importantly, of the total 57 Five-Year periods that we covered (2008-2018), only 9 periods experienced negative returns.
FWI gives diversifying benefits to a portfolio of Global Equities
Besides outperforming Global Equities in investment returns, FWI also gives diversifying benefits as the correlation of the fine wine market to Global Equities is only 0.24
Learn more about Fine Wine Vs. Global Equities in our Fine Wine Vs. Global Equities report.
Lena joined Cult Wines in early 2018 having previously completed several internships in the finance industry, including in a venture capital fund and the Investment Banking arm of China Securities, as well as passing her CFA level II qualifications. The experience in the investment industry combined with her passion for fine wine enables her to view this market with a fresh and unique perspective. In turn, this positions her unequivocally capable of identifying opportunities and risks in this complex market, using quantitative and scientific economic methods.
She graduated from the University of Toronto with bachelor degree specializing in finance and economics, and she has successfully passed the CFA level II exam. She is also pursuing the WSET level 3 designation. Outside of work, she loves exploring new gastronomical experience. On the wine front, Yijun has a passion for the wines of Germany, Bordeaux and especially Champagne.
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This essential Fine Wine Investment Guide will take you through the complete, transparent and informative journey of Wine Investment.