USA /– During the COVID-19 pandemic, the market has been uncertain, causing investors to pull out a lot of their funds and causing recession-type financial downturns. There are, however, a small handful of industries that are doing well in the midst of the pandemic – technology and food supplies being the ones discussed the most.
Your Money Geek writer Michael Dinich, however, took a look at one of the most overlooked winners in the stock market right now: wine futures. Wine futures have been receiving double digit annual returns over the past few years, and that hasn’t seemed to stop during the pandemic, but rather, expanded.
Dinich explains wine futures as thus: They’re a way for investors to invest in winemakers that are making wine that is high in demand. What they are able to do is buy highly sought after wines before the winery even bottles it. In some cases, it takes one, two, or even three years to actually see the wine out in retail and for investors to see their returns.
But, Dinich explains in his blog, wine futures are going to be lower than usual this year, because of the uncertainty of the market right now. As a result, investors can lock in a price right now, and can earn money on the futures if it ends up being more than the price that they locked in. Combine that with the perfect growing season that occurred in 2019, and Dinich believes that there’s the perfect storm for wine futures investors.
But, why? Here’s Dinich’s view: “The coronavirus disrupted the normal flow of the futures market. Buyers and sellers haven’t been able to connect through their traditional channels. As a result, wineries have large stocks of unsold wine. They need the working capital to harvest for this fall and are willing to discount their current prices to make that happen.”
In the article, Dinich does his best to compare previous years’ En Primeurs (the technical term for wine futures) so that potential investors can get an idea as to how they work. Dinich also explains how to connect with vineyards and how to get started in wine futures, which consumers can use in order to determine whether or not they wish to invest in wine in this manner.
About The Company:
Your Money Geek was founded on the premise that not everyone should have to stress out and continue the daily grind forever. Founder and Blogger Michael Dinich grew tired of the grind as a financial advisor, and committed himself to helping consumers to get out of their exhausting daily work grind as well. Dinich is one of multiple bloggers who provide this information on the Your Money Geek website. More information regarding Your Money Geek and their writing team can be found at https://yourmoneygeek.com.
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