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| Joined: | Sat Aug 25th, 2007 |
| Location: | Westchester County, New York USA |
| Posts: | 338 |
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A lot of people in the US and across the world, even the ultra rich and high net worth sectors, have been severely impacted by slowing economies. Falling oil and commodity prices, downdrafts in the financial sector and tightening of formerly easy credit are just several factors. Here in the microcosm that is NYC and the metropolitan area, the crazy bonus money of years past has been severely cut back. Down 50% is the new flat. Bling and flashy are out.
"And demand for luxury goods is expected to drop by 3 to 7 percent next year (2009), according to a recent study by Bain & Company, the first time the sector has recorded an annual sales decrease since Bain began tracking it in the early 1990s."
This from an article on Nov 14 2008 in the Wall Street Journal- "With even the biggest spenders starting to scrimp, luxury companies from Chanel S.A. to Versace SpA, Christian Louboutin and Chloé are reversing the industry's maxim that luxury prices only move up. The cuts range from 8% to 10% on most products sold in the U.S."
UHR is the stock symbol for Swatch, representing 19 watch brands. Share price is down 55% in 1 year. Yes, consistent with overall market declines
LMVUY is the symbol for LVMH, which encompasses 50 luxury brands, shares trading in the US. Down 65%
Anyhow, something's gotta give...
Just my 2 cents worth...
Last edited on Sat Dec 20th, 2008 04:04 pm by goldengrr