{"id":7360,"date":"2011-01-24T08:31:46","date_gmt":"2011-01-24T12:31:46","guid":{"rendered":"http:\/\/quotulatiousness.ca\/blog\/?p=7360"},"modified":"2011-01-24T10:03:14","modified_gmt":"2011-01-24T14:03:14","slug":"investing-in-fine-wine-doesnt-diversify-your-portfolio","status":"publish","type":"post","link":"https:\/\/quotulatiousness.ca\/blog\/2011\/01\/24\/investing-in-fine-wine-doesnt-diversify-your-portfolio\/","title":{"rendered":"Investing in fine wine doesn&#8217;t diversify your portfolio"},"content":{"rendered":"<p>Following up to <a href=\"http:\/\/quotulatiousness.ca\/blog\/2011\/01\/15\/fine-wine-as-an-investment\/\" target=\"_blank\">this post<\/a>, <em>The Economist<\/em> agrees that fine wine <a href=\"http:\/\/www.economist.com\/node\/17969905?story_id=17969905&#038;fsrc=scn\/tw\/te\/rss\/pe\" target=\"_blank\">tracks too closely to the price of oil<\/a> to offer much diversification for investors:<\/p>\n<blockquote>\n<p>A bottle of Ch\u00e2teau P\u00e9trus \u201982 can cost over $5,000, whereas the equivalent volume of crude oil sells for less than 50 cents. Ch\u00e2teau Brent may taste a tad rough, yet fine wine and crude oil have more in common than you might think. Their prices have risen and fallen in step in recent years (see chart).<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" style=\"float:right; padding: 0px 0px 0px 10px\" src=\"http:\/\/quotulatiousness.ca\/blog\/wp-content\/uploads\/2011\/01\/Wine_vs_crude_20110122.gif\" title=\"Wine_vs_crude_20110122\" width=\"290\" height=\"281\" align=\"top\" \/>Wine experts usually explain price movements by supply-side factors such as the effects of the weather and age, but research by Serhan Cevik and Tahsin Saadi Sedik, economists at the IMF, finds that supply has only a small impact on prices. Instead, fast economic growth in emerging economies has been much more important in recent years &mdash; as is the case for oil and other commodity prices.<\/p>\n<p>Between 1998 and 2010 there was a correlation of over 90% between changes in oil and wine prices. <\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Following up to this post, The Economist agrees that fine wine tracks too closely to the price of oil to offer much diversification for investors: A bottle of Ch\u00e2teau P\u00e9trus \u201982 can cost over $5,000, whereas the equivalent volume of crude oil sells for less than 50 cents. Ch\u00e2teau Brent may taste a tad rough, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[25,131],"tags":[641,571],"class_list":["post-7360","post","type-post","status-publish","format-standard","hentry","category-economics","category-wine","tag-imf","tag-investment"],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p2hpV6-1UI","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/7360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/comments?post=7360"}],"version-history":[{"count":4,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/7360\/revisions"}],"predecessor-version":[{"id":7365,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/7360\/revisions\/7365"}],"wp:attachment":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/media?parent=7360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/categories?post=7360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/tags?post=7360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}