Luxury Brand Stocks

Stocks are separated into different sectors of the economy. Luxury-brand stocks are companies that cater to the high-income consumer. Examples of luxury brand stocks are Coach, Inc. (NYSE/COH), Tiffany & Co. (NYSE/TIF) and Ralph Lauren Corporation (NYSE/RL). Firms that cater to the higher-income segment tend to be more correlated with asset prices than other indicators. Higher-income consumers tend to have more of their assets tied to the overall market. With assets that are more sensitive to the stock market, their spending is determined more by capital appreciation and less by general economic data such as employment levels, which hit the lower and mid-income citizens.


Success in the retail sector is all about image, marketing, the brand, and having the right people to execute on the strategy. J. C. Penney Company, Inc. (NYSE/JCP) is a perfect example of how not to operate in the retail…

There’s a belief that the rich become richer because they are frugal and know how to save. The budget cuts and tax increases at the beginning of the year saw higher income taxes for those earning over $400,000 annually. President…

It’s Valentine’s Day today, and if you’re looking for something amazing for that special someone, then look at some of these luxury brand stocks. As I have said on numerous occasions, Michael Kors Holdings Limited (NYSE/KORS) continues to show why…

It will be interesting to see how the high-end luxury retailers performed on Black Friday. Given the uncertainty of the fiscal cliff, and its impact on taxes especially for the rich, the wealthy may hesitate to spend money at this…

The shares of luxury stock Coach, Inc. (NYSE/COH) got sideswiped on Tuesday after the maker of high-end designer handbags and accessories fell short on its fiscal fourth-quarter sales. The company blamed the shortfall on lower-than-expected growth at factory stores. And…

With all of the doom and gloom that we hear about on a daily basis, most of it rightfully so, there actually is one segment in the retail sector that’s doing quite well: luxury brand stocks. If we look at…

Today I will touch upon another option trading strategy that I often use in addition to holding or trading stocks. In past commentaries, I have discussed basic option strategies involving calls, puts, and two-sided trades such as straddles.  The other…