Last month, former Moore Capital Management economist Joe Roseman called for investors to add some "SWAG" to their portfolios (silver, wine, art and gold). Following his comments, we analysed fine wine's performance relative to the other SWAGs over a ten-year period. As readers of the blog will know, fine wine emerged as one of the best investments, recording the lowest volatility - a broad measure of risk - and the second-highest return in the ten years to August 2011.
But how does fine wine's performance measure up if we extend the period under analysis to 20 years?
As you can see, fine wine (as represented by the Liv-ex Fine Wine Investables Index) has been the strongest performer since September 1991 – yielding the highest return (14.97%) and the lowest volatility.
*All benchmarks have been converted to GBP to remove the effects of currency movements.