The markets are volatile, American and European debt are out of control, and unemployment and underemployment are rising. Under these conditions we might assume that everyone is cutting back on their spending. We see that the low cost retail chains and products are doing better and the mid-priced products are losing customers.
However, as Jon Najarian from TradeMonster.com pointed out on Yahoo’s Breakout program, luxury businesses are maintaining their markets. For example, Tiffany & Co. has been a high-end jewelry business for 170 years and has now incorporated other luxury items into its product line. It operates worldwide and has been doing very well. Michael Kowalski, Tiffany’s Chairman and CEO said in a Yahoo Finance interview that the rich still have money and are still spending. Caroline D. Naggiar, Tiffany’s Chief Marketing Officer and a Senior VP has been with the company for thirteen years and has done a good job.
An interesting study of Proctor and Gamble show that both their high-end soap products and low end soap products are doing well. The mid-price range is selling less. So here is an opportunity to sell to the rich. You can also make money by buying Tiffany stock which has been steadily rising over the past two years.
Sorry, comments are closed for this post.