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May 30, 2022 View:

Stable performance of fine wine market in 2020 compared to stocks

In 2020, the premium wine market performed steadily while mainstream assets fell and then rose.

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The wine market performed positively in 2020, with positive growth in all major Liv-ex indices. the Liv-ex 50 (an index tracking daily price movements for Bordeaux first growths) and the industry benchmark Liv-ex 100 (an index tracking top wines from around the world) rose by 3.26% and 4.65% respectively in 2020. the Liv-ex 100 rose in November The Liv-ex 100 rose to its highest level in two years and traded at a ten-year high in value. The Liv-ex 1000, the broadest market indicator, was up 1.31%.

In March 2020, the Liv-ex 100 (-1.06%) and the Liv-ex 1000 (-1.32%) both fell the most since 2020 as the Covid-19 outbreak began in Europe and many countries around the world closed their cities. In fact, $1 billion of stocks worldwide evaporated in March, and the S&P 500 index fell to a new low on the 23rd of that month. In contrast, the fine wine market was more stable, recovering quickly in the second half of the year despite early declines; the industry benchmark index has risen every month since June.

In the midst of the turbulence of 2020, wines are not only rising in price, but also offer exclusive and rare stability.

The chart above compares the performance of the Liv-ex 100 with financial and equity market benchmarks (including the German DAX, the technology-led S&P 500, the London Stock Exchange FTSE 100 and the Hang Seng Index). By the end of November 2020, only the S&P 500 and Liv-ex 100 had grown; the DAX was flat, and the FTSE and Hang Seng still recorded negative growth.