September saw the Liv-ex Fine Wine 100 Index descend for the third consecutive month since its June peak. Interestingly, the current downturn is not dissimilar to that seen in the latter half of 2008. As such, recent history may provide some insight into the index's potential progress in the months to come.
After peaking in June 2008, the Liv-ex Fine Wine 100 Index fell for six straight months before its eventual recovery in 2009. This can be seen from the chart below, which compares the index's movement following its June 2008 high to its movement since June 2011.
Of course, buyers who took advantage of the sharp price falls in 2008 have seen a sizeable return on their investment. Nonetheless, despite the obvious parallels, it is impossible to know how long it will be before the index reaches a bottom this year. But if history should repeat itself, the next few months may be an ideal time to buy…
