Peter Gratton, M.A.P.P., Ph.D., a New Orleans-based editor and professor with over 20 years of experience in investing, risk management, and public policy, tells us how Mexico’s Tequila Lake exposes a Market Crisis That Might Affect Your Portfolio.
Earlier this decade, investors were betting big on tequila—a different celebrity seemed to be launching a new premium brand weekly. Now, Mexico is swimming in 525 million liters of surplus tequila, enough to fill 200 Olympic-size swimming pools and more than the total volume Mexico exports annually.
This sobering reversal reveals critical lessons about commodity cycles, changing consumer tastes, and why following the crowd can leave your portfolio with a hangover.
The shift from predicted shortages of tequila to a massive surplus shows how quickly commodity markets can reverse, affecting everything from exchange-traded funds to consumer goods stocks.
Many younger consumers are moving away from alcohol, part of a broader change in consumption patterns that’s reshaping many markets.
Click here to read the complete, original article by Peter Gratton on Investopedia
Source: Investopedia
