week we looked at the Liv-ex Fine Wine 50’s performance since its low point
in November 2012. In four months it has risen 10.8%.
Another index that has lifted since late November is the
Shanghai Composite. As shown below, there has been strong correlation between
the two indices over the last 12 months. Having fallen in the first half of 2012, both ran relatively
flat from July before rising at the end of the year. Yet while the Liv-ex 50
has been steadily climbing (reaching a nine-month high last week), the Shanghai
Composite rose sharply until peaking in February, and has since fallen 7%.
We have previously
noted the correlation between the performance of Chinese stocks and fine
wine. But with the Liv-ex 50 continuing to edge upwards despite the recent drops
for the Shanghai Composite, is China still driving the fortunes of the First Growths?