Five years on

9th August 2007 was labelled as the beginning of the global financial crisis. Five years to the day later, Deutsche Bank have examined a variety of financial asset classes over that time period and published a chart [taken from the Financial Times] displaying their five year total return performance.

How has wine fared as an asset class since the credit crunch began? Originally dipping, the five year trajectory of the Liv-ex 50 also features a drop around the time of the Lehman Brothers collapse in September 2008, before it climbed (due to surging Asian demand for First Growth wines) to a peak in June 2011.   

Over the five years of the global financial crisis the Liv-ex 50 has been both 19.8% below and 70.4% above the level it was at on 9th August 2007. Now at 297.65, the index is up from that day by 14.9%. On the Deutsche Bank chart this puts it just slightly below the FTSE 100, which has a five year return of 15.4%.

 

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