Feb 13, 2024
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The uncertainty in the economy seems to be coming from every corner: Inflation remains rampant, war in Europe has driven up food and oil prices and markets remain uncertain despite a recent bump.
With no sign of stability on the horizon, some investors are looking for safety in splendor — that is, the luxury goods and collectibles market.
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At times like these, “investors are naturally drawn to stores of value and ways to diversify their assets,” wrote Axel Lehmann, chairman of the Credit Suisse Group board of directors, in a 2022 report on collectibles.
From art to watches to wine, the luxury goods and collectibles market — also known as "passion assets" — has seen big gains, especially in the last couple of years. After all, how does one put a price on exclusivity?
With prices rising to exorbitant heights, the cost of admission into this market has become a serious barrier, especially for younger generations. That said, there are ways to buy into these asset classes without having to buy it all.
Drink it up
As a real asset, fine wine can provide diversification to protect your portfolio against the volatile effects of inflation and recession.
As of right now, the S&P 500 is up 19.74% over the last year. Meanwhile, the Liv-ex Fine Wine 1000 has gone up 22.28%.
It offers plenty of growth, too. Since 2005, Sotheby’s Fine Wine Index has gone up 339%. Wine outperformed the Global Equity Index by 1.88% annually over the last 15 years.
Investing in fine wine used to be an option only for the ultra-rich.
But with wine investing platform Vinovest you can buy into investment-grade wine too, just like Bill Koch and LeBron James.
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Getting started with Vinovest is simple. Just answer a few questions about your investment goals and risk tolerance, fund your account with at least $1,000 and Vinovest's master sommeliers will use proprietary algorithms to set up your portfolio.
From there, you can sit back, relax, and enjoy steady yield on this alternative investment.
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Think outside the box
Wine and art aren’t the only alternative investment options out there. But with so many passion assets to explore, it might be hard to narrow down what interests you the most.
Yieldstreet is a platform that allows accredited and non-accredited investors alike to invest in a broad range of diversifying assets.
From crypto to art to real estate, Yieldstreet makes it simple to invest outside of the stock market and yield solid returns with their professionally-vetted investment opportunities.
Plus, their team of experts carefully considers your goals as an investor, offering term flexibility and accessible minimums.
You can create your Yieldstreet account by providing some information about yourself and linking your bank account.
Then, start investing, track your performance and earnings and witness your wealth evolve.
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