Periods of market uncertainty often bring defensive assets back into focus. But as investors look beyond traditional markets, is there a wider role for tangible assets such as Scotch whisky?
In his latest article for Forbes Business Council, Speyside Capital CEO Paul Kopec explores this question, looking at what investors seek during periods of uncertainty and where whisky might fit within the broader diversification conversation.
Recent research from Schroders found that more than half of UK advisers surveyed had adjusted client portfolios in response to the geopolitical environment, with many adopting a more defensive approach.
Gold remains the traditional benchmark. However, the characteristics behind its long-standing role within portfolios also raise interesting questions about other tangible assets, including Scotch whisky.
Whisky is not a substitute for gold. It has distinct considerations around liquidity, valuation, selection and time horizons. However, as wealth managers and advisers continue to explore diversification beyond traditional markets, its role within the wider alternative asset landscape is becoming increasingly relevant.
In the Forbes article, Paul explores these similarities and differences, the fundamentals underpinning Scotch whisky, and why understanding the characteristics of the asset is essential when considering its place within a diversified portfolio.
