Investing in Wine Offers Great Opportunity in 2009
Lately it seems like traders and investors have become, more or less, the same people. The market’s upheaval caused some investors to lose patience and abandon their long-term strategies. While there might be a legitimate need to liquidate positions, many investors who removed their money from the market in a panic took a major loss. Those people didn’t grasp that being an investor means looking at the long-term investment horizon and counting to 10 instead of clicking “sell.” Traders who tired of the same old investment opportunities should consider investing in wine in 2009.
Marc Lowlicht, president of the wealth management division of Further Lane Asset Management, defines investing as, “buying companies at good values based on a discounted value for future cash flows.” He classifies trading as, “taking advantage of inefficiency in the marketplace.” Keeping that in mind, aggressive trading isn’t effective for investors who, by definition, should have long-term strategies. Since trading involves finding market inefficiencies–such as watching supply and demand and following the news–Lowlicht suggests investors leave this up to trained trading professionals. “The key is to keep the investor focused on why the plan was put together and not change course simply because the markets have run into a difficult period,” he says.
