Is anyone here structuring their portfolio in a way that anticipates increased sales of luxury and durable goods in a post-Covid economy with increased income inequality?
Following the Great Recession, we saw a dramatic expansion of economic inequality as those unable to weather the storm took out debt and sold off assets at bargain prices. Here too in 2020 we seem poised for a dramatic increase in economic inequality, particularly as employment seems to be stratified between those who can work from home and those who cannot, a trend that seems poised to continue.
I’m looking at luxury stocks, like KORS, RACE, BRBY and they seem like they are potentially at bargain prices, as these companies have not rebounded in the same manner as many of the consumer staple stocks. Increasing income inequality in the long run may spell higher margins on these luxury goods and increased EPS for these companies.
Has anyone else added luxury good etfs to their portfolio in anticipation of such a trend. I’m admittedly a total amateur, but I’m thinking of making a play on this theory.
Submitted September 03, 2020 at 05:06PM by suitupyo https://ift.tt/3jImLpj
