Even seasoned investors are facing consequences as a result of today’s announcement. The recent combination of high inflation combined with relatively stagnant consumer price index has been a major problem to many, with wild fluctuations now expected within the stock markets.
In times of financial uncertainty, many turn to alternative investments in order to make their portfolio as resistant to inflation as possible. Loosely defined as assets that don’t fall into conventional categories such as stocks or shares, alternative investments are usually physical items that appreciate over time, free from the influence of financial markets.
As Whisky Investment Partner’s Louise Robinson explains: “In these uncertain times, investors traditionally turn to tangible assets, such as properties, watches, and classic cars in order to avoid the external market influences.
With high entry points and a good level of knowledge required, these investments can be daunting for most. Thankfully, maturing alcohol casks offer the same benefits but without many of the drawbacks. It was the mid-nineties when we last saw the Bank Of England increase interest rates so drastically. At the same time, our client Roger Parfitt purchased two whisky casks. When he sold them in 2021, his investment had appreciated an incredible 4600%.
Although these levels of returns aren’t guaranteed, the spirit business is performing very well at the moment. With Whisky exports growing at 19% last year and premium Rum sales increasing an incredible 85% in the last quarter, cask alcohol is bucking the trend and showing real potential as the stand-out alternative investment class.”