8 Stocks Rising Fast on Rich People's Spending
BOSTON (TheStreet) -- Investors are discounting the effect of still-high unemployment, rising gas prices and inflation on wealthy consumers' spending habits.
They're driving up the stocks of upscale retailers in anticipation of earnings gains this year, while select off-price discount retailers of branded goods are riding on their coattails.
"Apparel/accessory/luxury" retailing stocks have jumped 25.4% this year through March 9, about three times that of the broader S&P 500. That trend should continue, given consumers spending habits, S&P Capital IQ analysts said in a research note.
"Momentum in the luxury market will extend into 2012, supported, in part, by increasing consumer awareness of luxury brands in emerging markets such as China," indicating that it's not just wealthy U.S. consumers pushing sales at the luxury brands, but buyers in emerging market countries where more and more people have the money to seek status through brand identity.