In today’s economic climate; safety and security is key for investors. We have seen the collapse of the world’s biggest financial institutions as well as markets echoing uncertainty throughout the globe – all affecting our savings, wealth and pension plans for the future. There is no denying the concern and apprehension among investors today as we near the bottom of this current recession. However, the Fine Wine market is yet again proving to be the safest ship through these volatile times...
Early indications in 2012 clearly point towards the best buying opportunities since 2009. The balance of ‘risk’ is now very attractive for the investor – current prices are 20-30% lower than their previous highs and we firmly believe timing could not be better for those wishing to enter this market.
Graph A provides an excellent insight to the trend of performance over the past 5 years – and despite two severe downturns in the global economy- the index produced 76.98% positive growth.
To further our thoughts on the matter of timing; we can look at another recent view on historical trends (illustrated from the Liv-ex blog and the long-performance Graph B) – notably the growth shown over the previous 10 years which clearly identifies the Credit-Crunch (2008/9 and recent market turmoil from the EU uncertainty). The over-all appearance allows us to be inclined to believe the Bulls will once again take the charge sooner rather than later!