by Giles Cadman
A depressed market mean people are looking at different options for investment. The lack of returns from standard investments means that investors are susceptible to salesmen offering all manner of alternative investments, including wine.
All manner of salesmen are coming out of the woodwork.
With income so painfully low for millions, the promises being made are eclectic and enticing. One reader from Surrey contacted me about a sales call he had received, suggesting he could might make a “13pc return” on wine in a year. He was considering investing some of his savings.
When income is so low – and “financial repression” is in full effect – it squeezes out rational behaviour. Suddenly, a 13pc return – be it from stamps, wine, US buy-to-let property – looks like something worth risking your capital to achieve.
Investors should remain skeptical of anyone offering “guaranteed returns” whatever the investment instrument.
