The financial system is struggling. Investing in fine wine can help protecting your portfolio

by Mar 13, 2020News0 comments

wine stockswine stocks

Hey, everyone! For those who haven’t noticed, I’ve introduced myself in our last post. I’m Breno, the new face writing for Alti.

I’m still talking to you from Lisbon — although I was supposed to be flying to Italy to visit Donatella winery in lovely little Montalcino. But as you know, nobody gets in or out. Sixty million people are in quarantine.

Just a day ago, I wrote to you about the possibility of investing in wine in times of uncertainty, such as it’s been happening with the covid-19 pandemic. Well, I’m back to the subject.

Why, you ask me? Well… I went to see how badly my investment portfolio was suffering from the market concerns. It was much worse than I imagined. Some key stocks I had bought in January had dropped more than 20 percentage points ever since. Some of my investment funds that had been performing very well simply plummeted.

Apart from some fixed income, it was a carnage. And it looks like it could only get worse. Because, in fact, it is.

But why am I telling you that? Simple: you need to think of alternative investments such as real assets to help protecting your portfolio.


(The Dow Jones industrial average, march 2019-march 2020)(The Dow Jones industrial average, march 2019-march 2020)

(The Dow Jones industrial average, march 2019-march 2020)

We are facing difficult days in the markets: Nasdaq, for instance, is limit down. But news of another USD 175 billion injection in the repo market by the FED are even more concerning. This means that short term dollars have become scarcer in the financial system.

Long story short? We are witnessing what looks like the degeneration of the world financial system.

Yes. A degeneration of the world financial system.

We are living an era of competitive devaluations, done through inflation, and yet there is a strong confidence in central bank activism.

Our founding member Paulo Pinto will argue that this faith in central banks to steer the economies is the biggest risk in the markets, because what is being done is a financial experiment, that will end bad.

On my behalf, what I can tell you is: as we go through this era of risks, it’s time to consider the strategic opportunity that a tangible asset such as fine and rare wine represents.


Of course, I’m not telling you to commit more than 3 to 5% of your portfolio. But nonetheless, such assets can — and should — be included.

So, to invest in wine with Alti Wine Exchange is really not a bad decision for your money– although the world is full of bad ideas about money.

The fine and rare wine you find on Alti Wine Exchange is limited in supply, and although it pays no interest, it becomes better (due to its quality) and rarer (because it is a consumer product!) as time goes by. This means an excellent appreciation on the long term and good results on a short-to-medium term, as our Wine Indexes show.

With our innovative blockchain-based platform, you can do this with transparency and safety. It’s free to join and easy to start trading. Got doubts? Check our FAQ. Want to to be a part of it? Get started here!


Explore More from Our Blog

Alti Wine Exchange Indexes: 2022 overview and outlook for 2023

Sergey Glekov Senior financial analyst The Alti Wine Exchange Indexes are a family of equal weighted indexes which trace price performance of fine and rare wines and shows equal weighted average returns on them. The indexes are subdivided by most important wine...

Alti Wine Exchange Indexes: 2021 overview and trends for 2022

Sergey Glekov Senior financial analyst The Alti Wine Exchange Indexes are a family of equal weighted indexes which trace price performance of fine and rare wines and shows equal weighted average returns on them. The indexes are subdivided by most important wine...

They have created the perfect storm for controlled demolition of money

I’m glad to be back talking financial insights, one glass of wine at a time. First they shut down the economy, to save lives. With the closure of the economy, production ceased. To compensate for non-production or reduced production, people were paid not to lose...

Spanish Cava Sparkling Wine: What You Need to Know!

Spanish Cava Sparkling Wine: What You Need to Know!

What is a Port Wine?

DEAR READER, Let’s start February off with a simple question: Good morning, Mr. Ferdinand, What is a Port wine? -Jacques Thank you, Jacques, for your brevity. Let’s get down to business! Ports are an underrated, very particular type of wine made in the Douro Valley,...

What to Expect for Fine Wine Investments in 2022

Let’s face it, between an ongoing COVID pandemic, erratic markets, fires, floods and major humanitarian crises, 2021 was exhausting. And though none of us can be sure what to make of 2022, we can say with confidence that fine and rare wine investments are looking...

Holiday Gift Guide for Fine Wine

It’s that time of year again! And so begins the search for the perfect holiday gift. Something unique, something that shows you truly care. How about a gift that keeps on giving? An investment. Imagine their surprise when you tell them that their gift is resting...


DEAR READER, As I grow immensely in popularity, I’ve noticed more of you interested in my personal life. I didn’t begin e-blogging with this in mind, but I don’t mind indulging every now and then. I imagine my intellect intimidates a lot of you, so maybe shedding some...

The Truth about Fine Wine

Fine wine. What does that really mean? The truth is, as words, they don’t mean much. There is no official classification system for the title “fine wine.” It’s not like the regulated usage of “Premier Cru” or “Grand Cru Classé,” for example, rather anyone can throw it...

Maipo Valley Reds

DEAR READER, I am again-and-again charmed by my readers’ curiosity! It reminds me of being a young sommelier, ready to take on the world one glass at a time. I know far too much to feel that way again—but at least I can experience a shred of it through you all! Dear...

Liquid Harmony

Harmony. Think Crosby, Stills, Nash & Young. Think Picasso's The Old Guitarist. It’s that moment when various elements come together to create magic. And magic really is the word, no? Wine can also sip in harmony, and I can think of no better example than the...

Where Does the Phrase “Aging Like Fine Wine” Originate?

DEAR READER, I received this charming question from an inquisitive reader last week. Dear Sommelier Ferdinand, Where does the phrase “aging like fine wine” originate? It’s so fun! -Imani I just love your question! What a lively spirit you have, Imani! I’m more of a...