Top wine outperforms Russell 3000 Index
Fine wine has outperformed a benchmark US stock index for 13 years, withstanding two recessions, a report has shown.
Economists Philippe Masset and Jean-Philippe Weisskopf compared wine prices with the Russell 3000 Index between January 1996 and January 2009, studying over 400,000 prices on regularly traded wines.
Since mid-2008, wine fell by 17 per cent, compared with the 47 per cent drop in the shares index, the Raise Your Glass: Wine Investment and the Financial Crisis report showed.
People may want to invest in wines such as those from Chateau Latour or Chateau Lafite Rothschild after the study read: "Our findings show that the inclusion of wine in a portfolio and, especially, more prestigious wines, increases the portfolio’s returns while reducing its risk, particularly during the financial crisis."
The Independent recently reported that the wine market was not immune from the recent downturn but has shown a strong recovery in recent months.