TY - GEN
T1 - Wine investment and portfolio diversification gains
AU - Fogarty, James J.
PY - 2018/1/1
Y1 - 2018/1/1
N2 - The existing literature on the return to wine is mixed. Some studies have found wine to be an unattractive investment option and others have found wine to be an investment class that provides excess risk adjusted returns. However, provided the return to wine does not have a strong positive correlation with standard financial assets, even if the return to wine is low, it is possible that including wine in an investment portfolio will provide a diversification benefit. Here the repeat sales regression methodology is used to estimate the return to Australian wine, and the return is shown to be lower than for standard financial assets. Several measures are then used to show that despite the return to Australian wine being lower than the return to standard financial assets, wine does provide a modest diversification benefit.
AB - The existing literature on the return to wine is mixed. Some studies have found wine to be an unattractive investment option and others have found wine to be an investment class that provides excess risk adjusted returns. However, provided the return to wine does not have a strong positive correlation with standard financial assets, even if the return to wine is low, it is possible that including wine in an investment portfolio will provide a diversification benefit. Here the repeat sales regression methodology is used to estimate the return to Australian wine, and the return is shown to be lower than for standard financial assets. Several measures are then used to show that despite the return to Australian wine being lower than the return to standard financial assets, wine does provide a modest diversification benefit.
UR - http://www.scopus.com/inward/record.url?scp=85059098958&partnerID=8YFLogxK
U2 - 10.1142/9789813232747_0014
DO - 10.1142/9789813232747_0014
M3 - Article in specialist publication
AN - SCOPUS:85059098958
SN - 2010-1732
SP - 337
EP - 352
JO - World Scientific Handbook in Financial Economics Series
JF - World Scientific Handbook in Financial Economics Series
PB - World Scientific Publishing
ER -