LIV-EX - MARKET UPDATE

As the Liv-ex 50 below suggests, the market is looking rather sure-footed despite (or because of?) the general uncertainty and fear stalking the mainstream markets. While global equities have bounced from their lows of early February, volatility remains, gold continues to rise and currency swings look here to stay until June 23rd when Britain decides whether to stay in, or leave, the European Union. So is fine wine being treated as a safe haven? Yes and no. Yes, in that after five years of consecutive falls in the price of Bordeaux, some believe that the downside is now limited. There is also its tangibility - a characteristic much sought after in times of fear. However if you look a little closer, the picture is less clear. In US dollar terms, for instance, the market continues to slide. But putting currency aside, there is another aspect of the market to consider. As the blog below points out, Bordeaux is outperforming all other regions on an annual basis for the first time since 2011. But, the lead is not coming from the First Growths, nor is it coming from the Right Bank legends like Petrus, Le Pin and Ausone. The Bordeaux market is being lifted at the lower end - the second wines of the Firsts and the super seconds to the flying fifths. Buyers are dipping their toes in the market, but they continue to show a good level of risk aversion.

Liv-ex 50 March 9th 2016 close

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