Good news for the 1%: Luxury stocks surge
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2017 is looking good for luxury brands. That's because investors are confident that weakening security fears in Europe and potential U.S. tax cuts for the wealthy will lead to a strong earnings season for the high-end industry, per the WSJ.
This is the business of happiness... You buy these kinds of products when things are stable. — Bernstein luxury analyst Mario Ortelli
Much of the optimism arises from investors betting luxury consumers in the industry's best two markets — China and the U.S. — are ready to ramp up sales growth again following a shaky few years impacted by the terrorist attacks in Europe and a controversial U.S. presidential election. The S&P Global Luxury Index has already risen 4.5% so far this year, and is expected to keep climbing.