Comments on: Wine market datapoint of the day

By: Foster Boondoggle

Foster Boondoggle — Thu, 09 Jul 2009 23:06:39 +0000

$90 Napa wines are signalling goods. They don’t cost that much because of their quality. They exist because – when times are flush – some people “need” to show off their wealth and sophistication. That “need” will come roaring back when ostentatious displays of wealth are fashionable again.

By: Jen

Jen — Thu, 09 Jul 2009 15:17:39 +0000

Dollared: Bordeaux values are available. Check out this article: http://www.examiner.com/x-5811-Michigan- Wine-Examiner~y2009m5d4-Value-Bordeaux-a nd-Burgundy

By: Matt

Matt — Thu, 09 Jul 2009 12:26:21 +0000

Felix, my old professor writes this up and I think you would get a kick out of it. http://wineeconomist.com/

By: Dollared

Dollared — Thu, 09 Jul 2009 01:10:57 +0000

Sigh. Still can’t afford Bordeaux, except for the occasional birthday party and quinceanera.

But you’re right on all counts. I’ll keep buying Spanish for special occasions…

By: maynardGkeynes

maynardGkeynes — Wed, 08 Jul 2009 20:57:37 +0000

“I hate a bubble I can’t pop.”

@Dollared: Can you imagine how much Bordeaux would cost today if it weren’t for all that Bay Area (and Wall St) excess cash chasing the $100 Napa Valley stuff? Felix, you are too kind. They are not just poor values, they are oak aged jug wines. Keep this a secret. Keep the bubble going.

By: Dollared

Dollared — Wed, 08 Jul 2009 19:27:15 +0000

California wines are tremendously overpriced. It is almost certainly a phenomenon tied to the excess cash in the Bay Area’s top 10%, and the fact that it is a two hour drive to Napa/Sonoma.

But how does one exploit that market anomaly? You can’t short overpriced zinfandels(and ridiculous chardonnays), and you can’t short “Estate Vineyard” parcels.

I hate a bubble I can’t pop.