The long-term financial drivers of fine wine prices: The role of emerging markets
CARDEBAT, Jean Marie
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
CARDEBAT, Jean Marie
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
< Reduce
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
Language
EN
Article de revue
This item was published in
Quarterly Review of Economics and Finance. 2018-02-01, vol. 67, p. 347-361
English Abstract
We analyze the long-term relationship between the fine wine market and stock markets, from world
level to specific countries, by applying a cointegration approach on a 21-year monthly database. Our
database includes the ...Read more >
We analyze the long-term relationship between the fine wine market and stock markets, from world
level to specific countries, by applying a cointegration approach on a 21-year monthly database. Our
database includes the Liv-ex Fine Wine Investables Index, 6 Liv-ex sub-indices, 25 MSCI Indexes and
10 national stock market indexes. Results suggest significant cointegration between emerging markets,
especially Asia, and fine wine markets, and also causality from the former to the latter. As a result, the
slowdown of economic growth in emerging countries can be a risk to the fine wine market. Furthermore,
Mainland China appears to be one of the main drivers of fine wine markets, and more precisely, the
leading Bordeaux wines. We suggest that along with single-index analysis, our approach can be taken
into consideration in fine wine price forecasting and portfolio diversification strategy.Read less <
Keywords
Cointegration
Financial markets
English Keywords
Wine
Emerging markets