Red Wine Index Falls this Year and Moves far Behind Gold

For wines produced in the Burgundy region of France, quotations soared to a record high in 2018, and the gains beat global stock markets and gold. However, due to higher prices this year, Burgundy wine sales have plummeted, while wine momentum in Italy, Champagne and Rhone has increased.

Barron`s.com reported on the 10th that the annual report of the London International Vintners Exchange (Liv-ex) showed that the Burgundy 150 index (Burgundy 150) jumped to This is a record high, but this year is the worst performing index. It has fallen 7.3% year-to-date, while the Bordeaux 500 has fallen 2.5%.

In the past, analysts have argued that wine and gold are positively linked because both are considered safe assets to avoid inflation. However, gold has risen 14.3% this year, far outperforming wine. Experts believe that political and economic factors such as Brexit, the US tariffs on European wines, the Sino-US trade war, and the political and economic turmoil in Hong Kong this year are the reasons for the poor performance of high-quality wines.

The “Red Wine Index” reflects the consumption situation at the top of the pyramid. Decanter.com reported on the 11th that the Liv-ex Fine Wine 100 index in the UK fell by 2.5% from January to November 2019. Liv-ex co-founder Justin Gibbs pointed out that the atmosphere in the second half of the year was different from the first half, and anxiety had been replaced by anxiety.

Wine Owners exchange analyst Miles Davis said that the introduction of new import tariffs in the United States, political turmoil in Hong Kong, and undiminished Brexit doubts are daunting.

More than half of the rich believe that the market will collapse next year

A UBS survey found that more than half of the world’s high net worth individuals with investable assets of at least $ 1 million believe that the market will collapse at some point in the year 2020.

CNBC and Zero Hedge reported on November 12 that UBS interviewed more than 3,400 high net worth individuals worldwide, of which 55% of the respondents believed that the market would collapse before the fourth quarter of 2020. At a time when geopolitical risks are heating up, the asset allocation of these super-rich people to cash has risen to 25% on average.

UBS Global Wealth Management’s client strategy office said in a research report on the 12th that investors see reasons to be cautious in the new year. For every three investors in the world, two believe that geopolitical events have a greater impact on the market than corporate fundamentals such as net profit, revenue, and growth potential.

Surveys show that the geopolitical risks most worried by these super-rich people include the Sino-US trade war and the 2020 US presidential election. (See full text here)