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

by Mar 13, 2020News0 comments

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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!


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