"Studies indicate that spending by the rich is closely correlated to the value of their portfolios… I’ve been working the luxury angle throughout the recession, so far to good effect. The LVMH Moët Hennessy Louis Vuitton shares I bought back in January 2008 are now showing a gain of over 40%. Tiffany and Sotheby’s, two stocks I recommended last year, have been on a roller coaster, but both are showing solid gains in 2010."
From the canyons of Manhattan to Beverly Hills, Calif., debate is again raging over the rich. Should we soak them by raising their taxes? Coddle them by extending their tax cuts? And who really is rich, anyway?The debate is likely to continue beyond the midterm elections. Rather than get all worked up over it, I have a simple proposition: Why not sidestep the political issues and make some money off of them? It is a strategy that can work for virtually any income bracket, considering that one share of Tiffany (about $47) costs less than even the cheapest silver key ring at the luxury chain’s flagship Fifth Avenue store. There are other factors favoring companies that cater to the wealthy:
By James B. Stewart, Oct. 2, 2010 NYT
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