Jean-Philippe is a teaching and research assistant, Chaire de Gestion Financiere (Prof. Isakov), at the University of Fribourg, Switzerland where he is currently also a Ph.D. candidate in finance.
Together with his colleague Philippe Masset who is Professor in finance at the Ecole Hoteliere de Lausanne, they have authored a working paper in March earlier this year titled: "Raise your Glass: Wine Investment and the Financial Crisis." This paper uses auction hammer prices over the period 1996-2009, with a special emphasis on periods of economic downturn, to examine the risk, return and diversification benefits of investing in fine wine.
Listen to the complete feature Wine as an asset class and its performance through the most recent crisis
Or listen to selected sub-features
Q1 - Share the salient findings of your research work.
Their research shows evidence that the wine market is heterogeneous with wine regions and price categories evolving differently in terms of volume and turnover.
Q2 - "Our findings confirm the cyclical nature of wine with returns primarily related to economic conditions and not to market risks."
Q3 - In the context of wine investing - why he believes liquidity risk is the most important risk and the relevance of duration related risk
Q4 - How should an investor know if they are over-paying for a wine.
Whether it is "the right" wine to be investing in … and considerations in the context of investing En Primeur (wines futures).
Q5 - Is there such a thing as “the right price” at which to buy a wine?
Q6 - If the assumption is that wine prices are inflated; shouldn’t investors wait for a correction before allocating? Or do you believe irrespective, there will always continue to be opportunities?
Q7 - When to invest vs. in which bottle of wine?
To invest in a Bordeaux or not?
Q8 - Has your data collection exercise, post March earlier this year, revealed the emergence of a recognisable trend?
Q9 - Can, and under what circumstances will the upward trend in wine prices be sustained?