How Mexico’s ‘Tequila Lake’ Exposes a Market Crisis That Might Affect Your Portfolio | Global News Avenue

Earlier this decade, investors bet on the Tonglin wine-there seems to be different celebrities to launch new advanced brands every week. At present, Mexico is swimming at 525 billion liters of littering liquor, which is enough to fill the 200 Olympic swimming pools and exceed the total number of Mexico’s annual exports.

This sober reversal reveals the key courses of the commodity cycle, the continuous changes in consumer taste, and why follow the crowd can bring your investment portfolio to the hangover.

Diliemm wine and classic commodity trap

In recent years, headlines have warned that global liquid liquor is short. The agave plants are used to make spiritual spending years to mature and surge Require It means that brewry is difficult to obtain enough blue Weber radian. At the same time, celebrities such as George Clooney, Kenndall Jenner and DWAYNE “Rock” Johnson Johnson (Rock “and other celebrities are launching their high -end bottles. Essence The price of advanced agave wine rises.

By 2023, the agave farmers conducted about 30 pesos (about 1.70 US dollars) for their blue Weber agave plants. Today, the same farmers are lucky to be in Spot market-93 % of the collapse caused thousands of Mexican farmers to abandon the field, which may mean that the future agave shortage. If the demand increases again, the price will occur again.

This is classic commodity Trap: The manufacturer is eager to increase the supply due to the shortage, and when the new supply starts to cool, the new supply is correct.

This may affect investors far beyond the spirits industry:

• Agricultural product exchanges trading funds The tremendous changes in supply and demand, and its stock price may flow widely
• Consumer goods companies related to raw material costs
• Banks holding a large number of agricultural loans may breach contract
• Companies in the entire supply chain, from farm equipment manufacturers to distributors

“Sober” and changing consumer habits

Mexico’s liquid wine surplus is derived from the changes in consumer behavior that many investors are paying close attention. Global consumers, especially young generations, have less drinking. Gallup found that the number of adults who have never been drinking since the beginning of the 2000s have never reduced by more than 15 %, and they have recently been likely to do so recently. At the same time, the decline in minors drinking is more dramatic.

This helps to reshape the beverage market:

• Senior non -alcoholic beverage company is seeing the growth of double digits
• The restaurant chain is expanding the wine -free cocktail menu
• The main beverage manufacturers are investing in a large amount of zero alternatives

Investment course

1. Watch the product cycle carefully-Thdi’s shortage usually leads to tomorrow’s surplus, which affects everything from ETF to consumer goods stocks.
2. Pay attention to changing consumer preferencesEspecially in young population statistics.
3. Pay attention to the communication effect between the interconnected marketEssence From agricultural loans to international trade processes to retail, the challenges and trade risks of regional industries may spread throughout the global market.

Bottom line

Tequila Lake reminds people that even the hottest market trends can quickly reverse-prudent investors should pay attention to these changes when they are obvious to everyone.