I was reading the Wall Street Journal today as I was putting in some time on the exercise bike while in New York City before work. I was on the East Coast for the magazine's Grand Tour in Atlantic City, which was last Saturday night. It was a fun event, if you missed it. You should have been there. Try to go to the ones in Chicago or Las Vegas. I still remember the 2001 Mouton as my wine of the night. It was so refined, complex and subtle. I wish I had a glass now!
Anyway, the headline of the story in the WSJ read "World Regains Taste for Risk." And the first paragraph of the story read: "Investors are aggressively piling back into markets shunned as too risky just a few weeks ago – driving up stocks in the developing world and raising concerns that the euphoria may be overdone."
Right away, as I pedaled away, I thought how this same headline and paragraph could be slightly changed and used to describe what is apparently happening with the top 2008 Bordeaux en primeur, or futures. Investors and speculators are apparently piling in on the best 2008 Bordeaux, and prices are quickly rising. Some wines such as first growth Lafite-Rothschild have already doubled since its initial release.
This all seems "overdone" to me. The top wines may be excellent when they are finally released on the market, but, as the winemakers in Bordeaux told me themselves, they will never be as great as 2000 or 2005. But, regardless, I really can’t see tying up your money with these wines now, especially with what appears to be a bear market rally and the global economy is nowhere near fixed. In fact, America's largest buyer of Bordeaux futures, Diaego Chateau & Estate Wines, has decided not to buy any 2008s. Yet, other people are in the world are "piling back into the markets shunned as too risky just a few weeks ago."
I my opinion, this is not a good idea -- and just when I thought that the top wines of Bordeaux might finally be a good buy.
Glenn S Lucash — May 11, 2009 5:37pm ET
Michael Tracy — Corona, CA — May 11, 2009 7:42pm ET
Matt Scott — Honolulu HI — May 11, 2009 8:21pm ET
Jeffrey Ghi — New York — May 11, 2009 8:28pm ET
Jeffrey Alle Cassetta — Ada, MI — May 11, 2009 8:36pm ET
Brad Schier — Texas — May 11, 2009 8:44pm ET
Karl Mark — Geneva, IL. — May 11, 2009 9:35pm ET
John Burman — Jupiter, Fl — May 11, 2009 11:30pm ET
Stephen White — May 12, 2009 8:56am ET
Thomas Hughes — Texas — May 12, 2009 9:59am ET
Michael Tracy — Corona, CA — May 12, 2009 2:38pm ET
Jordan Horoschak — Houston, TX — May 12, 2009 10:03pm ET
John Lin — TW — May 12, 2009 11:29pm ET
Jeffrey Ghi — New York — May 13, 2009 11:34am ET
Mark Reinman — NJ — May 13, 2009 5:15pm ET
James Suckling — — May 13, 2009 6:12pm ET
Howard Kaman — Vancouver, BC, Canada — May 14, 2009 1:16am ET
James Suckling — — May 14, 2009 6:06pm ET
Craig Mason — May 14, 2009 7:00pm ET
James Suckling — — May 14, 2009 9:55pm ET
James Suckling — — May 14, 2009 9:57pm ET
Howard Kaman — Vancouver, BC, Canada — May 15, 2009 1:46am ET
James Suckling — — May 15, 2009 10:31am ET
Michael Tracy — Corona, CA — May 18, 2009 7:34pm ET
James Suckling — — May 18, 2009 10:09pm ET
Michael Tracy — Corona, CA — May 20, 2009 7:04pm ET
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