www.thewealthadvisor.com Open in urlscan Pro
104.154.229.78  Public Scan

Form analysis
1 forms found in the DOM

GET /search/content

<form action="/search/content" method="get" id="search-api-block-form" accept-charset="UTF-8">
  <div class="js-form-item form-item js-form-type-search form-type-search js-form-item-keys form-item-keys form-no-label">
    <label for="edit-keys" class="visually-hidden">Search</label>
    <input title="Enter the terms you wish to search for." data-drupal-selector="edit-keys" type="search" id="edit-keys" name="keys" value="" size="15" maxlength="128" class="form-search">
  </div>
  <div data-drupal-selector="edit-actions" class="form-actions js-form-wrapper form-wrapper" id="edit-actions"><input data-drupal-selector="edit-submit" type="submit" id="edit-submit" value="Search" class="button js-form-submit form-submit">
  </div>
</form>

Text Content

Wealth Advisor
 * HOME
 * TOPICS
 * Indexing Channel
 * The Trust Advisor
 * Model Portfolios + Strategists
 * Commentaries
 * News
 * Insurance Advisor
 * Tax Protection
 * Portfolio Construction
 * Most Popular
 * TAMPs
   
 * WHITEPAPERS
 * NOW TRENDING
 * SEARCH
 * SUBSCRIBE
 * CONTACT

Skip to main content
Search



MAIN NAVIGATION

 * News
   
   
   FEATURED ARTICLES
   
   Hedge Fund Hell: How the Tech Crash Is Clobbering the Tiger Cubs
   Crypto Sell-Off: ‘We’re Finding Out Who’s Wearing Clothes,’ Strategist Says
   Investors Who Shorted Russia ETFs Are Now Stuck Paying Never-Ending Fees
   Wall Street Warns Market Liquidity Is Getting as Bad as 2020
   
   
   RECENT
   
   'Scary numbers': As Climate Losses Mount, How Should Insurers Contend With
   the Existential Threat Facing the Industry?
   Do Insurers Have Duty to Question Possibly ‘Abusive’ Annuity Cashouts?
   To Win Insurtech 2.0, Focus on Underwriting Before Growth
   Insurance Industry "No Stranger to Dealing With Inflation"
   'Under Attack by Fraudsters'
   
   
   POPULAR
   
   Morgan Stanley’s Wilson Sees S&P 500 Losses After Bear Rally
   Billionaire Bond Fund Manager Jeffrey Gundlach Warns of Real Recession in
   2023
   Wall Street’s Most Bearish 2022 Forecast was Bullish. It Always Was.
   Crypto Billionaires’ Vast Fortunes Are Destroyed in Weeks
   Who’ll Get the Warhols?
   
   
   TOPICS
   
   Indexing Channel
   Model Portfolios + Strategists
   News
   TAMPs
   The Trust Advisor
   Commentaries
   Tax Protection
   Crypto4Advisors
   Most Popular
   Portfolio Construction
 * Whitepapers
   America's Best TAMPs 2022
   Model Portfolio & SMA Strategists Selection Guide
   
   America's Best TAMPs 2021
   
   How to Start Your Own TAMP
   
   Roth Conversion Handbook by Covisum
   America's Best Trust Companies for Wealthy Families 2020
   
   2022 America's Most Advisor Friendly Trust Companies
   
   America's Best Trust Technology Buyers Guide 2021-2022
   
   Social Security White Paper - Is Time Running Out on Social Security?
 * Events
   
   No upcoming events at this time

 * Now Trending
 * Subscribe


MOBILE MENU

 * Indexing Channel
 * The Trust Advisor
 * Model Portfolios + Strategists
 * Commentaries
 * News
 * Insurance Advisor
 * Tax Protection
 * Portfolio Construction
 * Most Popular
 * TAMPs



Markets
DJIA31490.07-3.57%
S&P 5003923.68-4.04%
NASDAQ11418.15-4.73%


GEN Z THIRSTY FOR ALTERNATIVE INVESTMENTS AS THEY TURN TO FINE WINE

Facebook Twitter LinkedIn Email


The Wealth Advisor Contributor
May 17, 2022

(International Investment) - New research from global fine wine merchant
Bordeaux Index reveals that young UK investors are turning to fine wine as a way
to grow significant wealth, as part of their post-pandemic investment strategy.

Almost three in four (73%) of those under 25 who invest in the liquid asset say
they spend up to £20,000 per year on fine wine. A significant minority (7%) say
they spend between £50,000-£500,000, demonstrating a clear trend for a higher
proportion of wealthier investors to have wine portfolios.

The poll of 2,000 UK investors revealed that almost half (46%) of those
questioned have already invested in alternative investments including fine wine,
whisky, art and crypto. This rises to 62% for investors under 25, dropping to
under a quarter for older investors over 65 (24%).

On the back of increased interest in wine following the pandemic, sales at
global fine wine and spirits trader Bordeaux Index have increased by 44% YoY.
This upward trend is also present on the company's trading platform, LiveTrade,
which allows customers to trade their liquid assets. It has seen an uptick of
new accounts 50% YoY.

Grape Expectations



There are a number of reasons why wine has become a popular option for
investors:

 * Two in five (39%) say they invest in fine wine due to its accessible entry
   point compared to other alternative assets
 * A passion for the subject matter helps; around a third (35% of younger
   investors, 29% of older) said their investments were linked to a personal
   interest in wine
 * For younger investors under 25, 55 per cent say they think wine investment
   offers long term stability, almost a third (30 per cent) believe that fine
   wine is a great way to diversify their portfolio, while 29% say they chose it
   due to past disappointment with returns received from more traditional
   investments within the stock market.
 * However, the older investors have their eye on enjoying the prize as well as
   making money; a third (32%) of over 65s say they are focusing on wine to
   enjoy in their retirement.

Whilst Bordeaux wines remain a favourite stable investment for the majority
(48%), alongside Burgundy and Champagne (both 42%), investors have also been
branching out in particular into Italian wines (41%) given their increased
global prominence; indeed, they now register with almost the same popularity as
the more established investment regions. English wines are also whetting an
investment appetite amongst younger investors, with almost half (47%) saying
they're of interest.

However, investing is not worry-free; inflation (59%), Covid variants (56%),
Brexit (55%), the impact of climate change (48%) and a lack of portfolio
diversification (35%) are all giving investors reason for concern over the next
six months.

But despite this, Gen Z investors are positive; almost half (49%) feel confident
that fine wine's resilience makes it a good investment in times of crisis.
Further, more than half (53%) also believe that fine wine investments offer low
volatility and healthy returns.

Matthew O'Connell, CEO of LiveTrade, Bordeaux Index's online trading platform
said: "For those worried about what 2022 may bring to their investments, wine's
clear capital preservation across the pandemic and its outperformance in 2021
(+19% vs. +14% for UK equities) is clearly very encouraging. Given its
accessible entry point, history of alignment with inflation, and long-term track
record of outperforming equities, it is unsurprising that investors,
particularly those in the younger generations who have the thirst to look away
from very traditional assets, are turning their focus to wine."

According to  O'Connell, the best wines to back this year are:

1. Champagne - A star performer of luxury wine investments in 2021, delivering
strong returns, up by more than 25%. From prestige cuvees such as Dom Pérignon
to Krug, Champagne is set to continue to see outsized interest throughout 2022,
especially if you can get your hands on a stellar vintage such as 2002 and 2008.
2. Bordeaux - Both old and young vintages are causing a stir currently, but a
classic investment option would be blue-chip claret, which put in a strong
performance on the LiveTrade fine wine platform in 2021. Its price grew by 15%,
evenly split across First Growths, Second Growths, and wines from the Right
Bank. Performance across Château Lafite and Château Mouton Rothschild makes them
great contenders for a confident investment in 2022.
3. Burgundy - Trade volumes from the region are up by 35% and strong gains are
expected to continue into 2022, as increasing demand meets dwindling supply off
the back of a series of reduced harvests, not least the frost-ravaged 2021
vintage. Look out for names such as DRC's La Tâche in Vosné-Romanée and Domaine
Armand Rousseau in Gevrey Chambertin.
4. Italy - While not quite hitting the dizzy heights of the Super Tuscans in
2020, Italian fine wines are still enjoying around 30% trading volume growth on
LiveTrade and are an attractive investment portfolio option into 2022.
Tignanello did particularly well in 2021 and could continue to outperform this
year.

By Mark Battersbyclock
February 4, 2022


Please enable JavaScript to view the comments powered by Disqus.


POPULAR

Events


MORGAN STANLEY’S WILSON SEES S&P 500 LOSSES AFTER BEAR RALLY

Commentaries


BILLIONAIRE BOND FUND MANAGER JEFFREY GUNDLACH WARNS OF REAL RECESSION IN 2023

Economy


WALL STREET’S MOST BEARISH 2022 FORECAST WAS BULLISH. IT ALWAYS WAS.

Crypto4Advisors


CRYPTO BILLIONAIRES’ VAST FORTUNES ARE DESTROYED IN WEEKS

The Trust Advisor


WHO’LL GET THE WARHOLS?


MORE ARTICLES

Insurance Advisor
9h ago


'SCARY NUMBERS': AS CLIMATE LOSSES MOUNT, HOW SHOULD INSURERS CONTEND WITH THE
EXISTENTIAL THREAT FACING THE INDUSTRY?

The impacts of climate change are forcing insurers to step up and play a greater
role in mitigating long term risks.

Insurance Advisor
9h ago


DO INSURERS HAVE DUTY TO QUESTION POSSIBLY ‘ABUSIVE’ ANNUITY CASHOUTS?

A federal appeals court on Tuesday asked New York’s highest court to weigh in on
whether a mentally impaired Florida man can sue Transamerica Life.

 * More Articles




POPULAR

Events


MORGAN STANLEY’S WILSON SEES S&P 500 LOSSES AFTER BEAR RALLY

Commentaries


BILLIONAIRE BOND FUND MANAGER JEFFREY GUNDLACH WARNS OF REAL RECESSION IN 2023

Economy


WALL STREET’S MOST BEARISH 2022 FORECAST WAS BULLISH. IT ALWAYS WAS.

Crypto4Advisors


CRYPTO BILLIONAIRES’ VAST FORTUNES ARE DESTROYED IN WEEKS

The Trust Advisor


WHO’LL GET THE WARHOLS?


NAVIGATION

 * About
 * Contact
 * Advertise with The Wealth Advisor
 * Privacy Policy
 * Unsubscribe
   © The Wealth Advisor 2022


✓
Thanks for sharing!
AddToAny
More…