Wednesday, April 19, 2017

Small luxuries to do well when wage growth stays stagnant

Consumers tend to buy the best of what they can afford, even if it’s within lower-priced categories. I developed a “small luxuries” investment theme, and my firm’s index of companies involved in premium beer and liquor, perfumes, luxury clothing, jewelry, home products and handbags outperformed the S&P 500 from the March 2009 market bottom, rising 616% vs. 251% for the total market.

Stocks that fit the bill include, Williams Sonoma, Tiffany & Co., Boston Beer Co., Coach and Ralph Lauren. Companies that can adapt to the demand for small luxuries will continue to be winners in the current environment where wage growth remains stagnant.


via forbes