In the ‘everything bubble’ era, we plan ahead with alternative investments

by Sep 22, 2020News, Thinking outside the bottle, Wine Trading Academy0 comments

 

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Paulo Pinto

Alti Wine Exchange founding member

Dear reader,

Fine wine, as we have been defending lately, is a real asset that can protect you from the perils of inflation and economic instabilities.

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The most compelling case for owning real assets comes from Paul Tudor Jones, the billionaire hedge fund manager. According to Bloomberg, “Paul Tudor Jones buys bitcoin as a hedge against inflation”.

Personally, I do not see bitcoin as a real asset. But the message is clear: get out of paper money. If this trend picks speed among wealthy people, everybody will be affected.

We have been saying for a while that every person should put part of their cash in real assets like fine and rare wine.

This is a very old concept, now under a very new technology available for those looking for alternative safer investments. That is the purpose of Alti Wine Exchange, with its very rare and unique listed wines.

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Why invest in fine wine in such times?

Most people have no interest in trade deficits nor excess debt in all western countries, but these will have consequences with higher taxes, and lower growth and earnings.

So even if you are happy because your mortgage is not going to go up for the foreseeable future, the borrowing will make a difference – because we will have more laws, more regulation, more rules to comply with, and they will not make us richer. And all the technology in the world will be irrelevant for this expectation of making us richer all the time.

I have always preferred to be contrarian with investments and always stayed away from things that are loved, or with high expectations. I much prefer the underdogs like rare wine, as long as they can be tradable.

Considering the current world’s financial “everything bubble” – stocks, bonds, real estate, etc caused by Central Banks’ money printing –, this kind of alternative investment could be perfect.

In the case of fine and rare wines, even more important than the potential safeguard benefits is the fact that a wine portfolio will grow with time.

The longer you hold your wine investment, the greater the rewards – given that a bottle of such fine wines as the ones listed on Alti Wine Exchange becomes even rarer as time goes by.

We are living unusual times with the pandemic, and politicians are doing unusual errors because of it – with unpredictable consequences.

That is also why we like to look ahead. The investment horizon with fine and rare wine should last an entire decade or more, and this is good, because it forces us to think long term, and stick to the cause by planning in advance.

 

 

A new horizon for fine wine investment

As a trading platform for fine and rare wines, Alti Wine Exchange makes it possible to trade the rarest vintages at the fairest market price market has to offer. The way only a true exchange can offer, with transparent bid and offer prices allowing for continuous matching 24/7.

The main advantage of Alti Wine Exchange over other assets is its simplicity. It’s the sort of asset that everyone knows, and you can even decide to drink it.

While the rules for the Alti platform are simple, you can’t just go to a supermarket and buy wine if you want to make real money out of it.

Instead, when you use Alti Wine Exchange, you have safety and best conditions ensured. The wine traded on the platform is in bond with Bordeaux City Bond and has only travelled from the producer to there and has been kept in the best possible conditions.

To take advantage of fine wine investment, you do not need to know about finance, leverage, swaps, futures, compound or other financial complicated concepts. You can just buy one of the bottles on offer and leave it to appreciate, as simple as that.

If you are new around here, don’t forget to check our FAQ and list of available wines.

Until then,

Paulo

 

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