I like to use all kinds of investment calculators when I’m looking for wines to invest. Now you may be wondering what has an investment calculator got to do with wine investing? Well, wine investment is a great deal about finding the right wine to invest at the right price. But one important factor when looking at the wine investment market is to know what is happening in the stock market and the rest of the global economies.
If you are a really serious fine wine investor then you have to address all angles of the investment world and see what the rest of the world’s investments are doing to analyse where the wine market is placed.
For example, a wine investor is someone who is seeking out a low risk investment. An investor who is looking to protect their capital investment during a bearish stock market. Just protecting our investments during a global recession regardless of making a return but not actually losing money, can be crucial.
You see, the fine wine investment market goes down for its own reasons, and they are usually against the grain of the stock market bulls. So it’s good to note that buying wine when the stock market bears are in full force, is a good time to buy wine.
So an investment calculator can be really handy to check different types of markets, just to get an overall feel as to where the economy is heading.
Now I am sure you are thinking, well hold on a minute, if fine wines for investment are so expensive then surely they will go down in a recession or troubled economy. Well, that statement used to have some truth in it but not any longer. In the current climate of fine wine investment, because it has simply come such a long way from where it was 15 years ago, it has now become a very popular asset to own in a large portion of investors around the world. Which means that fine wine as an investment is no longer a segregated stand alone investment that does not get affected by the economy.
In addition to this point, the other key factor is that there will always be extremely wealthy people in the world. 5% of the population hold such a large portion of the world’s finances and it has been proven time after time, or should I say recession after recession, that the wealthiest people in the world almost always benefit when there is recession and generally rise up making more returns during downturns in economies. So the rich get richer and the poor are getting poorer, which means there will always be a market for the most expensive wines in the world. And as there are more millionaires and billionaires made each year, this only adds pressure to the limited stocks available for the top rated classified growths of fine wines which we call our favourite investment wines.
An investment calculator can mean many different types of a calculator. For example, I like to use a forex calculator like Xe.com which can give me in depth details of different currencies and how volatile they are behaving. I can view the charts and compare currencies against one another.
Another investment calculator I like to use are property investment calculators. If you use these property investment calculators in different countries when searching for properties, they usually have mortgage calculators which give you a guide on the interest rates that are charged by banks offering loans for properties in that country. If an interest rate is very low or at zero, then the market is clearly in a difficult situation because the governments are trying to support a slow economy by making it cheap to borrow money. There are other investment calculators related to property that can give you analysis on how the property markets are doing in different countries.
Investment calculators addressing stock markets are my favourites, accessing US Stock markets like the Dow Jones or the S&P 500 can give you some good indicators to where the economy is. You can see and compare different markets like the UK FTSE against the Dow Jones and see if they are experiencing the same volatility or slow growth or aggressive growth. Are the stock markets in bullish or bearish territory?
There are so many different Investment calculators online that are free to use and they give some great analysis. The most basic of investment calculators that can give you an indication to how much your investment will be worth in x number of years based on a return are useful. If you want to see how much you can afford to invest into wine over say a 3 year period and give a simple return of 5-7% then see how much your wine investment portfolio will be worth in 5 years. This can give you a goal to work on. One which will make you proud when you achieve it.
And of course its a nice little nest egg to rely on when you need access to savings.
Even on our trading platform http://investintowine.com we have an advanced search, this can be considered as an investment calculator per say, because it allows you to drill down into a specific wine from a specific region, classification and critic rating with a specific range of price. This allows you to really nail down what you are looking for. Give it a try, if you are not sure how to use it, just below the advanced search fields there is a short video telling you how to use it.