Invest in China, not wine (chart of the day)

wine stocks gold

The S&P 500 and gold have outperformed fine wine as an investment over the past few months. But the correlation is most notable between wine and the Shanghai composite as the above chart and article from Bloomberg shows. Since the April 18, 2011 high in Shanghai, wine and Chinese stocks have moved down in tandem, a glaring correlation.

This gives further evidence to our previous question of whether the specter of fraud is casting a pall on the fine wine market: it seems China is such a big driver of fine wine prices, that fraud (specifically, the apprehension of Rudy Kurniawan) has little effect.

So…why not stop treating wine like an asset class, actually pull a few corks, and trade the Shanghai composite instead if you want similar returns to wine? (Or, US stocks or gold for the best return, in hindsight.)

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2 Responses to “Invest in China, not wine (chart of the day)”


  1. Dear Tyler, speaking about Investment, Wine and China, I think you should like this post: http://www.julienboulard.net/1/post/2012/07/moutai-to-release-premium-priced-wine.html


  2. [...] when the wine auction market’s froth appeared to be blowing off, the fine wine world is bracing for some [...]


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