Alcohol share prices in the US are far stronger than before the covid-19 slump struck with the US Alcoholic Beverages/Drinks Index up a fifth over the full year, having almost halved in February (see chart).
![](https://i0.wp.com/www.philcain.com/wp-content/uploads/2021/01/Screenshot-2021-01-03-at-2.22.57-PM.png?resize=463%2C330&ssl=1)
A share price rise needn’t necessarily indicate an expectation of higher profits or revenue. It could be a “flight to safety”, where people make more reliable bets in crises, which is why gold prices go up.
Interpreting share movements is a matter of speculation. This interpretation would indicate the US financial market expects alcohol to fair relatively well and is willing to bank on it. ■