Thanks for watching guys! I've really appreciated all the support on my channel over the past few weeks. The kind words definitely don't go unnoticed. :)
Its because they know something is coming and they are trying to keep their wealth. It's pretty fucking obvious. Its not macroeconomics its the world is fake and a illusions. Why would Warren Buffet sell is position in Apple. Becaus he know something is coming. If you are so rich and dont have to worry about money, why would you decrease your spending....... because you know something is coming.
I hate to burst your soap bubble, but my snot bubble just burst. Every time this has happened, a recession has always followed within 3 months. Don't say I didn't warn you.
@@saurabh79323 then why are you clicking and commenting on the video? The most annoying thing on youtube is the commenters who "doesn't care" about the particular content. MOVE ON THEN TO ANOTHER VIDEO
A crash and bullish market provides equal high-yield potential, it's all about information and strategy application, I've seen folks make huge 7figure profit in a crashing market and pull it off much easily in a bull market Unequivocally the crash/recession is getting somebody somewhere rich.
On occasion you can beat the market with blind luck, but I wouldn't depend on it. Having a science background there is a saying, 'Luck favors the informed', I've found it to be true, allowed me in great part to retire early
No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024.
Jessica Lee Horst' is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
you saying it like this is the first crash in history of economy lool, there were many crashes and luxury goods survived all of them and grew bigger during each crash, because rich only get richer, its only the poor and middle class who bought luxury items on their credit cards that will feel the pain.
True luxury that has always been out of reach for the (lower) middle class, e.g. Hermès or Ferrari, is holding up much better than the "more affordable" brands. The products of these companies are so exclusive that only the truly rich can actually afford them, or even buy them in first place (you often need to have a long customer relationship with the brand to have access to the more exclusive products).
Since the debt crisis could unleash carnage on the stock market leading to economic downturns. We need to be prepared for potential market volatility. how can I secure my $600K stock portfolio against declining?
Concentrate on two main objectives. First, keep yourself safe by knowing when to sell stocks in order to limit losses and maximize gains. Second, get ready to benefit from market changes. I advise consulting a coach or other professional for advice.
That makes sense. I’ve been using a financial market expert for two years now and I own a six-figure diversified portfolio from investing in stocks. I want to diversify more this year, though.
Annette Christine Conte is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment...
Patience, sacrifices and a consistent investment mindset can win you over the course of decades. Investing is not a child's play that anyone can win over it. The markets will see the bulls and the bears but we should not get greedy or scared by those things. Our investing approach should be a long term game and we should not get bothered b how the markets are performing in the daily basis.
The strategies are quite rigorous for the regular. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
The second half of this year will undoubtedly be worse than the first. Due to poor investment decisions that I would not have made if I hadn't been so concerned about my portfolio, I lost a significant amount of money last year. I continued to invest, but I was undecided about whether to begin making house payments. I eventually sold my jobs, and the house required more work than I had anticipated. I'm not sure how much longer I can continue in this manner.
True. My portfolio was diversified across several markets with the help of a financial planner, and were able to achieve over a million in net profit among high dividend yield equities, ETFs, and bonds. It is vital that you have a variety of exposure, including in firms that are currently generating cash flows.
Fr! The saddest part is there are gullible people who think it’s real and ACTUALLY go all the way in and come out totally screwed over on the other side. RUclips doesn’t care to do anything about it because they just don’t give a rats behind.
Don't underestimate the social pressure. People do crazy things, like leasing trousers or taking out a loan for a handbag, just to fulfil the expectations they think other people have of them.
Social pressure will make people go against their values, integrity , etc. War is the best example, people do wild wild things (from our perspective) when the social pressure ramps up.
@@jimbojimbo6873 This is not at all going against people's values and integrity. People aren't buying luxury goods against their will. In most cases these luxury goods ARE they values. Its a new money thing.
@@SourDonut99 i’m using it as an example for social pressure generally and how powerful it can be to sway and influence. Not this specific example, but I do think it applies massively to this example.
@@SourDonut99 people don't have time to have value or integrity these days, they just take cues from social media influencers. I am exaggerating of course but it is also true, pre internet most people wouldn't care about this stuff but now you have a much larger audience getting caught up in what's hot or not while having a total lack of self development because their brain is hooked to technology all day long.
it is fueled by the personal innate desire of middle class to feel like they belong to upper class and flex on their poorer middle class friends, not societal pressure. especially in countries where class hierarchy is rigid.
luxury brands primary customer is middle class pretending to be wealthy hence you see it in the numbers. saying the main costumer is unaffected by recession is blatant ignorance. high net worth individuals cant care less about 90% of "luxury brands"
Nah there's new money people who will always buy luxury brands and still be multimillionaires. And there's always new money, especially in Asia where showing off wealth is common
I'm a fairly wealthy Chinese American, but I grew up poor in China. I never bought a true luxury item. I consider them a huge waste of money. Financially savvy people know to buy assets that generate wealth rather than things that add to your liabilities. I noticed that poorer someone is, the more they tend to over compensate by buying expensive/luxury brands. This is the main reason why the poor gets poorer, mostly their own poor financial sense.
You're kinda right, relative to one's total income. But ultimately, even if a greater % of one's low-middle class income is spent on luxury goods, it'll never compare to the truly rich, and their sheer ability to spend on said luxury goods at an even lower impact to their total income. There are plenty of rich people who are careful about their spending, I'm sure. But there are also plenty of rich people who can share the same quality of life, regardless of whether they spend 100x more on luxury goods altogether.
I come from a family where any purchase beyond the normal costs had to be backed by a loan. I am now by no means wealthy but I consider that I can live comfortably and I don't generally need to look at the price tag on things but I am always getting baffled by the amount of luxury things people with a lot less income than me buy that even though I can actually afford I feel like it's a useless expense
I recently bought myself a nice gold Seiko watch which was only a month old with the store receipt from a Seiko collector (yes they do exist! I prefer reliable Japanese engineering to European). I paid $180 for a watch that the guy paid over $550 for. He told me he wanted to get another Seiko watch which was $795 for his collection to be “just right.” He showed me his collection of 13 watches. He couldn’t have more or less than 13 Seiko watches as it was “lucky.” His rented house he shared with a friend looked like a dump. I own my middle class home and have investments in investment property, gold, silver and cash. A Seiko watch may not be a prestigious luxury brand, but this example can be applied to other brands of items. Luxury goods are designed to give you the illusion of wealth while they keep you poor.
Seiko watches, usually ranged between $500-1500, aren’t considered luxury watches. If Seiko watches made your friend broke, most likely it was something else you didn’t see from the outside, like child alimony or gambling problems. Stop spreading misinformation that collecting watches make you broke!
@@burtonsmiddleclassreview4511 buying 13 Seikos or 1-2 Omegas/Rolexes would NOT make you broke. Bad financial decisions such as indulging in luxury items beyond means will.
Luxury goods are a true wealth destroyer. I'm confident the audience of this fantastic channel largely don't purchase items of any of the brands mentioned in this video
I got a Gucci wallet. Luxury brands actually make quality stuff. Its often one cut above the rest. That being said, quality really tops out at like $200 for a wallet. Just buy the cheapest thing these brands have the offer and you pretty much maxed out on build quality. If you throw anymore money at it, then youre just getting useless stuff like more gold and I mean 10% more gold for 500% more money and often youre not getting anything.
Some buy on the preloved market, and I've got some massive bargains. Like $50 for an authentic lizard skin bag by a Swiss label. People are slaves to brands but some brands are just obscure or unloved but still great value. That said, most simply don't know when to stop. People tend to shop for a fantasy life, and this is the problem.
the items you're most familiar with are high volume stuff that's considered "designer" but mass produced by these fashion houses, just be smart with your money regardless. hedi slimane designed jeans are gonna be a high quality regardless of it's from his time at dior or celine, the name doesn't make the item.
I have to walk past the Luis Vuitton store every day as my work is on the same block. There is always a line of people waiting to get in, I don’t mean any offence with this - but when I see the people lining up they don’t come across as wealthy people. I don’t see anyone there who looks like a surgeon, a lawyer, high end architect or engineer. I see a bunch of unaccomplished people in their early to mid 20s, who are all craving to appear rich and appear successful - but it doesn’t take a genius to realise that the majority of these people are not actually successful and wealthy individuals.
How does a high end architect look like? I'm one who designs skyscrapers and one of the most expensive residential buildings and I'm mistaken for a bouncer or gym trainer. Don't fall into stereotypes, people who actually do the stuff don't care about fitting into them
Ah, another bubble burst! Just when I saved up $231k in my emergency fund and was ready to dive into the market. Guess it’s time to take out the popcorn and watch the drama unfold. Anyone else feeling like they’re on a financial rollercoaster without a seatbelt? 😂 If anyone’s got a genius headstart idea, I’m all ears. Maybe it’s time to dust off the ol’ investment playbook
Don't use "income" to delineate classes in the US. Super wealthy CEOs don't have incomes, they have stock that pays a dividend. You are mixing mansions and motorhomes into one category and it's skewing your analysis.
Market highs can sometimes be followed by corrections, but predicting the timing and extent of it is challenging. I've heard some analysts talk about a 'massive' correction. It makes me wonder if it's time to adjust my $2M portfolios or maybe even consider some defensive investments.
the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
Well, Nancy Magaret Delony is the licensed expert I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Unbelievable, Really there is no better feeling than coming across a similar name who has helped change ones family life financially, Yes i know her and honestly i can testify her strategy is amazing and truly worth giving the shot.
Someone once said "luxury goods is for poor people who think it's the goods for rich people". The big exclusive brands have diversified into the lower and wider market, meaning they're weaker to economic swings I don't think the real deluxe quality market will slow, but the "luxury"-brands will sell less if the large population are weaker economically. Also, I find it a bit amusing that you excluded the UK and Norway from the Europe graph. They are still in Europe, just not in the EU. If you're talking about the Euro, none of the scandinavian countries have it either, but I'm guessing you were referring to the united nations?
There is quite a difference between luxury and "hard" luxury (watches and jewellery) : the former is more like fast moving consumer goods, the latter is very different. Buying a $150 perfume, or a $500 jumper is different from buying a $40k watch, these are two very different markets. And every major luxury group has a different mix of the two businesses (LVMH the most diversified, Kering the most fashion heavy, etc) and their future stock performance may well depend on that mix
I am from Luxembourg and I can just confirm everything that is said in your video (relevant bc I know the population group that cares about luxury really well).Luxury items are just status symbols and mostly bought by "middle income" people. It is just keeping up with the Joneses but on an absurd level. Those are the people that feal the price hikes most. Far overdue imo. I think that the luxury brands knew this was comming and they just wanted to ride the wave as lo g as they could.
Well I was hoping youd give a case for buying these stocks in the video as not only their products are discounted. Obviously carries risk if the macro economy worsens further.
I have been watching your videos for about a year now, It always loads, in the homepage, I thought I was subscribed, thank you for providing such concise data driven insight with a ton of graphics.
Wow. I'm a bit perplexed seeing her been mentioned here also Didn't know she has been good to so many people too this is wonderful, i'm in my fifth trade with her and it has been super.
This might be a sign of a weak consumer and fear taking hold. this may serve as a prerequisite for a recession should things continue in this direction.
Growing up from the lower middle class to where I am today, I never understood why people would spend so much on luxury or “overpriced” goods. Sure, it’s fine to get a few pieces of good quality in a lifetime, but there’s no need to buy 20 handbags for $5-10K each. Just insane.
Pretty sure over the last few years 90% of luxury watches were purchased with PPP money. I know a business owner that got $600,000 in the form of a PPP loan that was ultimately forgiven completely.
This is why luxury companies like LVMH are amazing investments! An increasingly young target market, a growing middle class and the insatiable need to look rich in society!!! I love luxury stocks
Being rich is not about how much you spend it’s how much you keep. My wife and I have purposefully kept our liabilities below median averages for our city, even with wage increases. We currently make over 250k/yr. And our cars are older but reliable. Our bills are less in a month than most of our friend’s mortgage payments. That being said we save more than we spend on a monthly basis and are well on our way to financial freedom in our 30s. Lifestyle creep is a real thing, it’s take discipline and perspective to avoid it.
Interesting that luxury collectibles such as sports cards are still seeing increases year over year and recently up 3% still in the past 90. Some sectors of the hobby have been increasing higher and sports in off season like basketball and hockey have seen their standard 1-2% fall since- nothing alarming going on quite yet in my investment world.
I can still afford luxury but I stopped buying luxury five years ago. The price hikes in luxury far exceed the value of the items and the way the sales associates wanted you to jump through hoops to spend your own money put a negative taste in my mouth. I don't know if I will ever purchase luxury again.
I used to love luxury watches when I worked in the city every day. Now most people I know work from home and who cares about luxury goods when there's nobody around to see them. When you're on your own on the couch a Rolex watch is no better than the clock on my phone.
These brands should have spun up subsidiaries to protect their main brand and appeal to growing middle class. This would have allowed to the smaller entity to be flexible in its competitive market whilst not impacting the parent company results to that extreme. It would be fun to see if they do a case study to prove this or not
no. in short luxury goods are no longer purchased by just high income individuals, but purchased by lower/middle class people due to "entry level" luxury items which are more susceptible to macroeconomic trends and changes. if you dont care about it you shouldn't be worried about it.
The link from rates to unemployment to spending isn't very well articulated. For example, the impact of central bank rates on new spending is the primary impact not continual debt servicing, meaning discretionary spending is less affected. Inflation and wage rises also need to be assessed to determine discretionary spending, beyond this, savings rates need to be considered. The phrase "consumer pull" back has multiple variables. For example in the EU, savings rates have increased from Q2, 22 of 12.7% to Q1, 24 of 15.3%... This also contributes to consumer pull back that I would argue has a more direct connection to luxury spending.
yeah, no. some of my clients are in the repo business, they repot 3x repo. basically 4 years after covid bonuses, the loans are up for renewals and they have no money. plain and simple.
The reason why the news article at the start excluded Japan was because Chinese and Korean consumers' luxury spending happened in Japan rather than domestically, because of the favorable exchange rate. So the slowdowns presented are somewhat overstated as a result of the foreign transfer of consumptive spending.
I'll stick with comfortable housing that keeps itself at the right temperature and has good clean air to breathe. I don't need fancy brand name clothes and accessories. They're not going to help me be healthy or sleep well at night!
Hey Brandon - I am following since you had ~100k subscribers! Your content is really Gold! I will go buy the two of your courses. I will just wait for the Black Friday period. 😂
Was just thinking the other day that fashion stocks might be out of my circle of competence regardless of the macro economic stuff. Closest I'll get is NKE but I think their moat is stronger and it's an athletics stock not fashion - gotta disagree with Buffet/Munger on that.
so this video about luxury brands consumer is not all recession proof rich people also includes low to mid classes. rich 45% mid 55%. and these luxury market is picked(sky rocketed) after Corona and now keeps falling and falling. and now economy is getting bad we need to prepare for short. correct?
you see the sht that is going on in the world... yes it would effect the high end purchases wearing a high end watch in London was getting you guaranteed to have it stolen, etc
The lixury goods market is based on its worse to look poor than to be poor. IMO more wealthy people are moving from lavishly displaying that wealth and would see it better placed in other investments.
Luxury brands also have a very volatile demographic appeal. Young Black, brown, and Chinese people. I went to a very diverse university. None of the White or Non-Chinese Asian students cared much about expensive brands. When they did have preferences, it would be for stuff like Hollister or Addidas. Whereas every student from the Global South and many of the Chinese students had to have Rolex, Louis Vitton, or Gucci. Thankfully, for their own sake, they hadn't discovered Hermes or Balleciaga yet.
I don’t have any thing luxury. I drive a old 07 fj cruiser that I do all my own work on I wear plain clothes with no brand names I do every bit of home maintenance my self including just put in new mini splits and doing my roof this fall. My only flex is being 40 and never having a w-2 job and I do wear about a 10k gold chain that my wife has made for me with our daughters finger print. Had it on every day for 9 years. But I could keep the pendent and sell the big ass Gucci link chain any day and not gaf.
I was in one of these stores, cant remeber if it was gucci prada or whatever. I saw a price tag on a handbag for 1500 euros and I thought damn thats steep. Only to realise that was only for the strap. The handbag itself was 5000😅.
most luxury goods are junk you can get something elegant and functional for like 5% of their prices. lux car, watch, hand bags, cloth. none of it make you live a better life.
It could be that people bought luxury stuff and discovered that it's quality was worse than regular products. Once cheated, they're not gonna buy again.
Another very important phenomenon in China is that almost the entirety of the middle class is first generation middle class. Therefore, their spending mindset tend to be much more susceptible to economic outlook. They have the tendency to splurge when things look good, and pull back dramatically in a downturn like this, as they all grew up poor and have elderly parents and children to support
Good video. But I must correct you. The Chinese don't/ can't own any real estate. Real estate is owned by the state in China. Real estate being land, of course.
Thank you for your videos... BTC price has been volatile lately, but I believe it's crucial to focus on educating newcomers on strategies beyond simply holding through market dips. One advantage of this space is the ability to buy during dips and actively trade, generating profits while awaiting inevitable price increases. Many people lack a deep understanding of how this market operates. Charts cannot predict asset movements with certainty; prices fluctuate up and down. Despite this volatility, the market remains profitable.... I have managed to grow a nest egg of around 100k to a decent 732k in the space of a few months... I'm especially grateful to Kerrie Farrell, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape....
Investing with an expert is the best strategy for beginners and busy investors, as most failures and losses in investment usually happen when you invest without proper guidance. I'm speaking from experience..
A lot of not very rich people buy luxury good to make themselves feel good, to flex, etc. I suppose that a chunk of their customers can’t afford it anymore due to income loss and that a chunk have put off purchases due to sentiment about job security and income/wealth.
Thanks for watching guys! I've really appreciated all the support on my channel over the past few weeks. The kind words definitely don't go unnoticed. :)
Background music is really annoying 😂 Cannot finish watching video because of it.
Its because they know something is coming and they are trying to keep their wealth. It's pretty fucking obvious. Its not macroeconomics its the world is fake and a illusions. Why would Warren Buffet sell is position in Apple. Becaus he know something is coming.
If you are so rich and dont have to worry about money, why would you decrease your spending....... because you know something is coming.
Oh no, the dumb shit that no one needs market collapsed
well said
😂
Luxury watches are a totally different game imo, they store wealth really well
Have absolutely never understood why people simp so hard for these fairly cringe brands.
@@alefavourite They store wealth fairly well, if you can find a dumbass who buys a watch for $10000
My bathroom soap bubble just burst. It has serious implications and deserved a video on its own to warn everybody
hahaha hit me up, that'll have to be my next video 🤣
I am more interested in bathroom soap bubble than luxury bubble burst
I hate to burst your soap bubble, but my snot bubble just burst. Every time this has happened, a recession has always followed within 3 months. Don't say I didn't warn you.
@@saurabh79323 then why are you clicking and commenting on the video? The most annoying thing on youtube is the commenters who "doesn't care" about the particular content. MOVE ON THEN TO ANOTHER VIDEO
@@nyiridonat so much hate, chill and relax it is funny comment
A crash and bullish market provides equal high-yield potential, it's all about information and strategy application, I've seen folks make huge 7figure profit in a crashing market and pull it off much easily in a bull market Unequivocally the crash/recession is getting somebody somewhere rich.
On occasion you can beat the market with blind luck, but I wouldn't depend on it. Having a science background there is a saying, 'Luck favors the informed', I've found it to be true, allowed me in great part to retire early
No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024.
this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Jessica Lee Horst' is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
These luxury brands are learning the hard way that when it comes to the economy, even the fanciest handbags can't carry the market!
very punny 😂
Nice pun
oh yea, and I don't feel any pity for them
bruh haha
you saying it like this is the first crash in history of economy lool, there were many crashes and luxury goods survived all of them and grew bigger during each crash, because rich only get richer, its only the poor and middle class who bought luxury items on their credit cards that will feel the pain.
True luxury that has always been out of reach for the (lower) middle class, e.g. Hermès or Ferrari, is holding up much better than the "more affordable" brands. The products of these companies are so exclusive that only the truly rich can actually afford them, or even buy them in first place (you often need to have a long customer relationship with the brand to have access to the more exclusive products).
Since the debt crisis could unleash carnage on the stock market leading to economic downturns. We need to be prepared for potential market volatility. how can I secure my $600K stock portfolio against declining?
Concentrate on two main objectives. First, keep yourself safe by knowing when to sell stocks in order to limit losses and maximize gains. Second, get ready to benefit from market changes. I advise consulting a coach or other professional for advice.
That makes sense. I’ve been using a financial market expert for two years now and I own a six-figure diversified portfolio from investing in stocks. I want to diversify more this year, though.
Who is this person guiding you and how can i reach he/she?
Annette Christine Conte is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment...
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
Patience, sacrifices and a consistent investment mindset can win you over the course of decades. Investing is not a child's play that anyone can win over it. The markets will see the bulls and the bears but we should not get greedy or scared by those things. Our investing approach should be a long term game and we should not get bothered b how the markets are performing in the daily basis.
The strategies are quite rigorous for the regular. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
The second half of this year will undoubtedly be worse than the first. Due to poor investment decisions that I would not have made if I hadn't been so concerned about my portfolio, I lost a significant amount of money last year. I continued to invest, but I was undecided about whether to begin making house payments. I eventually sold my jobs, and the house required more work than I had anticipated. I'm not sure how much longer I can continue in this manner.
We've all made mistakes at some point. You should consider financial planning
True. My portfolio was diversified across several markets with the help of a financial planner, and were able to achieve over a million in net profit among high dividend yield equities, ETFs, and bonds. It is vital that you have a variety of exposure, including in firms that are currently generating cash flows.
Do you mind sharing your financial planner ?
You ain’t gonna get me to spend $400 for shoes or $700 for a purse. Keep wasting your hard earned money folks
I'm with you. I'd rather give the money away to someone deserving.
Yeah it means your not the high net worth individuals that the luxury brand target in the first place, so why bother to comment??
But, that because you're poor. To someone with money $700 is lunch money bro. It's nothing. A night out.
All these scammers in the comments. Such a sad state of affairs for modern monetary discussions 😑
There's way too many bots these days, reminds me of the Dead Internet Theory.
give me all of your money! I'll -double it- nay triple it!
@@remy9519fool! Give me your money and I'll pay you 25% dividends monthly!
Fr! The saddest part is there are gullible people who think it’s real and ACTUALLY go all the way in and come out totally screwed over on the other side. RUclips doesn’t care to do anything about it because they just don’t give a rats behind.
Don't underestimate the social pressure. People do crazy things, like leasing trousers or taking out a loan for a handbag, just to fulfil the expectations they think other people have of them.
Social pressure will make people go against their values, integrity , etc.
War is the best example, people do wild wild things (from our perspective) when the social pressure ramps up.
@@jimbojimbo6873 This is not at all going against people's values and integrity. People aren't buying luxury goods against their will. In most cases these luxury goods ARE they values. Its a new money thing.
@@SourDonut99 i’m using it as an example for social pressure generally and how powerful it can be to sway and influence. Not this specific example, but I do think it applies massively to this example.
@@SourDonut99 people don't have time to have value or integrity these days, they just take cues from social media influencers. I am exaggerating of course but it is also true, pre internet most people wouldn't care about this stuff but now you have a much larger audience getting caught up in what's hot or not while having a total lack of self development because their brain is hooked to technology all day long.
it is fueled by the personal innate desire of middle class to feel like they belong to upper class and flex on their poorer middle class friends, not societal pressure. especially in countries where class hierarchy is rigid.
luxury brands primary customer is middle class pretending to be wealthy hence you see it in the numbers. saying the main costumer is unaffected by recession is blatant ignorance. high net worth individuals cant care less about 90% of "luxury brands"
Nah there's new money people who will always buy luxury brands and still be multimillionaires. And there's always new money, especially in Asia where showing off wealth is common
Nobody cares about luxury when your groceries and rent are through the roof already
Here in under a minute and still couldn’t beat the bots.
They're relentless :(
How can we invest in bots? 😂
@@kaifrolic5668 i saw a girl in centre of London today got beaten up by 3 black guys for her LV bag. BLM we should protect them at all cost
The black?@@ghosthdel3098
I'm a fairly wealthy Chinese American, but I grew up poor in China. I never bought a true luxury item. I consider them a huge waste of money. Financially savvy people know to buy assets that generate wealth rather than things that add to your liabilities. I noticed that poorer someone is, the more they tend to over compensate by buying expensive/luxury brands. This is the main reason why the poor gets poorer, mostly their own poor financial sense.
You're kinda right, relative to one's total income. But ultimately, even if a greater % of one's low-middle class income is spent on luxury goods, it'll never compare to the truly rich, and their sheer ability to spend on said luxury goods at an even lower impact to their total income.
There are plenty of rich people who are careful about their spending, I'm sure. But there are also plenty of rich people who can share the same quality of life, regardless of whether they spend 100x more on luxury goods altogether.
Okay bro no need to show off.
@@jimbojimbo6873 I doubt they really are.
@@jimbojimbo6873 invejoso
I come from a family where any purchase beyond the normal costs had to be backed by a loan. I am now by no means wealthy but I consider that I can live comfortably and I don't generally need to look at the price tag on things but I am always getting baffled by the amount of luxury things people with a lot less income than me buy that even though I can actually afford I feel like it's a useless expense
I recently bought myself a nice gold Seiko watch which was only a month old with the store receipt from a Seiko collector (yes they do exist! I prefer reliable Japanese engineering to European).
I paid $180 for a watch that the guy paid over $550 for. He told me he wanted to get another Seiko watch which was $795 for his collection to be “just right.”
He showed me his collection of 13 watches. He couldn’t have more or less than 13 Seiko watches as it was “lucky.”
His rented house he shared with a friend looked like a dump.
I own my middle class home and have investments in investment property, gold, silver and cash.
A Seiko watch may not be a prestigious luxury brand, but this example can be applied to other brands of items.
Luxury goods are designed to give you the illusion of wealth while they keep you poor.
thanks for helping the guy paid over $550
i do it same on fb marketplace, help other people who need cash..
Seiko watches, usually ranged between $500-1500, aren’t considered luxury watches. If Seiko watches made your friend broke, most likely it was something else you didn’t see from the outside, like child alimony or gambling problems. Stop spreading misinformation that collecting watches make you broke!
@@ondreiii man you really missed the point: Buying a lot of brand new luxury items will make you broke. Get a life.
@@burtonsmiddleclassreview4511 buying 13 Seikos or 1-2 Omegas/Rolexes would NOT make you broke. Bad financial decisions such as indulging in luxury items beyond means will.
Actually affluent people don't buy luxury goods. They like it low key. Middle class love loud luxury.
Lie perpetuated by coping poor people
…And Working class just buy fakes.
Have you met rich people?
The chart at 2:35 can be misleading. Count inflation and dollar value over the same period.
Luxury goods are a true wealth destroyer. I'm confident the audience of this fantastic channel largely don't purchase items of any of the brands mentioned in this video
I got a Gucci wallet. Luxury brands actually make quality stuff. Its often one cut above the rest. That being said, quality really tops out at like $200 for a wallet. Just buy the cheapest thing these brands have the offer and you pretty much maxed out on build quality. If you throw anymore money at it, then youre just getting useless stuff like more gold and I mean 10% more gold for 500% more money and often youre not getting anything.
Well not so sure about that because people who don't generate will not have wealth regardless!!!
Some buy on the preloved market, and I've got some massive bargains. Like $50 for an authentic lizard skin bag by a Swiss label. People are slaves to brands but some brands are just obscure or unloved but still great value. That said, most simply don't know when to stop. People tend to shop for a fantasy life, and this is the problem.
the items you're most familiar with are high volume stuff that's considered "designer" but mass produced by these fashion houses, just be smart with your money regardless. hedi slimane designed jeans are gonna be a high quality regardless of it's from his time at dior or celine, the name doesn't make the item.
@@deborahcurtis1385- Is shopping therapy still a thing, à la Carrie Bradshaw?
who knew when you deliberately remove the middle class to make the 1% richer you lose any potential market for luxury goods? thats fucking crazy.
Appreciate you having the balls to report a realistic perspective on the economy.
I have to walk past the Luis Vuitton store every day as my work is on the same block.
There is always a line of people waiting to get in, I don’t mean any offence with this - but when I see the people lining up they don’t come across as wealthy people. I don’t see anyone there who looks like a surgeon, a lawyer, high end architect or engineer. I see a bunch of unaccomplished people in their early to mid 20s, who are all craving to appear rich and appear successful - but it doesn’t take a genius to realise that the majority of these people are not actually successful and wealthy individuals.
How does a high end architect look like? I'm one who designs skyscrapers and one of the most expensive residential buildings and I'm mistaken for a bouncer or gym trainer. Don't fall into stereotypes, people who actually do the stuff don't care about fitting into them
Haha, I've been saying it for 3 years... we'll be back to normal when people have spent themselves back to the middle class, if not lower.
Ah, another bubble burst! Just when I saved up $231k in my emergency fund and was ready to dive into the market. Guess it’s time to take out the popcorn and watch the drama unfold. Anyone else feeling like they’re on a financial rollercoaster without a seatbelt? 😂 If anyone’s got a genius headstart idea, I’m all ears. Maybe it’s time to dust off the ol’ investment playbook
Soon, it will be luxury watch brands’ turn to burst.
Already happened/happening...ppl waking up to buying overpriced crap..
@@kentondragon9263 Yup, and the service from the stores is atrocious. 18-month queue for a Rolex! Madness!
Don't use "income" to delineate classes in the US. Super wealthy CEOs don't have incomes, they have stock that pays a dividend. You are mixing mansions and motorhomes into one category and it's skewing your analysis.
Market highs can sometimes be followed by corrections, but predicting the timing and extent of it is challenging. I've heard some analysts talk about a 'massive' correction. It makes me wonder if it's time to adjust my $2M portfolios or maybe even consider some defensive investments.
the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
Mind if I ask you to recommend this particular coach you using their service
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Someone once said "luxury goods is for poor people who think it's the goods for rich people". The big exclusive brands have diversified into the lower and wider market, meaning they're weaker to economic swings
I don't think the real deluxe quality market will slow, but the "luxury"-brands will sell less if the large population are weaker economically.
Also, I find it a bit amusing that you excluded the UK and Norway from the Europe graph. They are still in Europe, just not in the EU. If you're talking about the Euro, none of the scandinavian countries have it either, but I'm guessing you were referring to the united nations?
Who was that someone?
lol..I was thinking the same thing why a big chunk of Europe was missing, if that was greenland.
There is quite a difference between luxury and "hard" luxury (watches and jewellery) : the former is more like fast moving consumer goods, the latter is very different. Buying a $150 perfume, or a $500 jumper is different from buying a $40k watch, these are two very different markets. And every major luxury group has a different mix of the two businesses (LVMH the most diversified, Kering the most fashion heavy, etc) and their future stock performance may well depend on that mix
I am from Luxembourg and I can just confirm everything that is said in your video (relevant bc I know the population group that cares about luxury really well).Luxury items are just status symbols and mostly bought by "middle income" people. It is just keeping up with the Joneses but on an absurd level. Those are the people that feal the price hikes most. Far overdue imo. I think that the luxury brands knew this was comming and they just wanted to ride the wave as lo g as they could.
Best finance Channel on RUclips, I learn something every time.
Aspiring to be middle class and therefore over consuming has to be the biggest trap ever..
Well I was hoping youd give a case for buying these stocks in the video as not only their products are discounted. Obviously carries risk if the macro economy worsens further.
I have been watching your videos for about a year now, It always loads, in the homepage, I thought I was subscribed, thank you for providing such concise data driven insight with a ton of graphics.
just bought LVMH stock last week. maybe was not a good idea?
Can you interview Elena Stein?
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I'm new at this, please how can I reach her?
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she's mostly on Telegrams, using the user name
This might be a sign of a weak consumer and fear taking hold. this may serve as a prerequisite for a recession should things continue in this direction.
Growing up from the lower middle class to where I am today, I never understood why people would spend so much on luxury or “overpriced” goods. Sure, it’s fine to get a few pieces of good quality in a lifetime, but there’s no need to buy 20 handbags for $5-10K each. Just insane.
First video I have watched from you and I appreciate the simplified breakdown of this topic. Subscribed!
Is this the indicator for starting of recession?
Pretty sure over the last few years 90% of luxury watches were purchased with PPP money. I know a business owner that got $600,000 in the form of a PPP loan that was ultimately forgiven completely.
luxury brands are tax on the wealthy, you'd have to be touched to spend $3000 dollars on a suitcase.
It must also be said it no longer cool to flaunt your money.
So why lvmh did a big rebound?
Can you get rid of the back ground noise
This is why luxury companies like LVMH are amazing investments! An increasingly young target market, a growing middle class and the insatiable need to look rich in society!!! I love luxury stocks
Loud budgeting or at least silent luxury is far more admirable. This could be a tiny step to more conscious planet, albeit long way to go.
Being rich is not about how much you spend it’s how much you keep. My wife and I have purposefully kept our liabilities below median averages for our city, even with wage increases. We currently make over 250k/yr. And our cars are older but reliable. Our bills are less in a month than most of our friend’s mortgage payments. That being said we save more than we spend on a monthly basis and are well on our way to financial freedom in our 30s. Lifestyle creep is a real thing, it’s take discipline and perspective to avoid it.
Interesting that luxury collectibles such as sports cards are still seeing increases year over year and recently up 3% still in the past 90. Some sectors of the hobby have been increasing higher and sports in off season like basketball and hockey have seen their standard 1-2% fall since- nothing alarming going on quite yet in my investment world.
I can still afford luxury but I stopped buying luxury five years ago. The price hikes in luxury far exceed the value of the items and the way the sales associates wanted you to jump through hoops to spend your own money put a negative taste in my mouth. I don't know if I will ever purchase luxury again.
So good time to buy? 😁
I used to love luxury watches when I worked in the city every day. Now most people I know work from home and who cares about luxury goods when there's nobody around to see them.
When you're on your own on the couch a Rolex watch is no better than the clock on my phone.
These brands should have spun up subsidiaries to protect their main brand and appeal to growing middle class. This would have allowed to the smaller entity to be flexible in its competitive market whilst not impacting the parent company results to that extreme. It would be fun to see if they do a case study to prove this or not
Very informative, well done
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Should I be worried?
I don't think there's much to worry about from the luxury goods market in particular. :)
no. in short luxury goods are no longer purchased by just high income individuals, but purchased by lower/middle class people due to "entry level" luxury items which are more susceptible to macroeconomic trends and changes. if you dont care about it you shouldn't be worried about it.
i'm hearing and feeling it too, thanks for this
The link from rates to unemployment to spending isn't very well articulated.
For example, the impact of central bank rates on new spending is the primary impact not continual debt servicing, meaning discretionary spending is less affected. Inflation and wage rises also need to be assessed to determine discretionary spending, beyond this, savings rates need to be considered. The phrase "consumer pull" back has multiple variables. For example in the EU, savings rates have increased from Q2, 22 of 12.7% to Q1, 24 of 15.3%... This also contributes to consumer pull back that I would argue has a more direct connection to luxury spending.
Great video, so obvious once you watch your explanation.
Luxury purchase in the lower socio-economic groups is akin to "keeping up with the Jones's".
yeah, no. some of my clients are in the repo business, they repot 3x repo. basically 4 years after covid bonuses, the loans are up for renewals and they have no money. plain and simple.
The reason why the news article at the start excluded Japan was because Chinese and Korean consumers' luxury spending happened in Japan rather than domestically, because of the favorable exchange rate. So the slowdowns presented are somewhat overstated as a result of the foreign transfer of consumptive spending.
I know it might be an unpopular topic but could we talk about ESG in investing - whether the big banks movement are really legit and justifying?
I'll stick with comfortable housing that keeps itself at the right temperature and has good clean air to breathe. I don't need fancy brand name clothes and accessories. They're not going to help me be healthy or sleep well at night!
Hey Brandon - I am following since you had ~100k subscribers! Your content is really Gold! I will go buy the two of your courses. I will just wait for the Black Friday period. 😂
Great video. More videos like this looking at sectors.
I like how your map excludes UK, Switzerland and Norway from Europe :D
Was just thinking the other day that fashion stocks might be out of my circle of competence regardless of the macro economic stuff. Closest I'll get is NKE but I think their moat is stronger and it's an athletics stock not fashion - gotta disagree with Buffet/Munger on that.
thanks for the indepth insights! :) great work
In reference to the luxury goods moat: " Many people are gullible, and we can expect this to continue. " P.T. Barnum.
Great insight.
so this video about luxury brands consumer is not all recession proof rich people also includes low to mid classes. rich 45% mid 55%. and these luxury market is picked(sky rocketed) after Corona and now keeps falling and falling. and now economy is getting bad we need to prepare for short. correct?
So when are these comoanies going to have sales
you see the sht that is going on in the world... yes it would effect the high end purchases
wearing a high end watch in London was getting you guaranteed to have it stolen, etc
The lixury goods market is based on its worse to look poor than to be poor.
IMO more wealthy people are moving from lavishly displaying that wealth and would see it better placed in other investments.
Luxury brands also have a very volatile demographic appeal. Young Black, brown, and Chinese people. I went to a very diverse university. None of the White or Non-Chinese Asian students cared much about expensive brands. When they did have preferences, it would be for stuff like Hollister or Addidas. Whereas every student from the Global South and many of the Chinese students had to have Rolex, Louis Vitton, or Gucci. Thankfully, for their own sake, they hadn't discovered Hermes or Balleciaga yet.
Your analysis of the personal savings is incredibly skewed, the PPP loan forgiveness was 790 Billion in the US alone.
I don’t have any thing luxury. I drive a old 07 fj cruiser that I do all my own work on
I wear plain clothes with no brand names
I do every bit of home maintenance my self including just put in new mini splits and doing my roof this fall.
My only flex is being 40 and never having a w-2 job and I do wear about a 10k gold chain that my wife has made for me with our daughters finger print. Had it on every day for 9 years. But I could keep the pendent and sell the big ass Gucci link chain any day and not gaf.
I was in one of these stores, cant remeber if it was gucci prada or whatever. I saw a price tag on a handbag for 1500 euros and I thought damn thats steep. Only to realise that was only for the strap. The handbag itself was 5000😅.
most luxury goods are junk
you can get something elegant and functional for like 5% of their prices.
lux car, watch, hand bags, cloth. none of it make you live a better life.
this is not surprising, you can only buy so many watches, handbags, clothes…
I think is a market that will go up again. I will watching and think about to invest in business like Kering or LV.
I hope that this continues.
It could be that people bought luxury stuff and discovered that it's quality was worse than regular products. Once cheated, they're not gonna buy again.
$2000 luxury handbag made by slave labor for $100.
More like 20$
You look like gavin belson from sillicon valley series
The background music is way too hectic :(
Great video!
So, this is a recession, right?
Another very important phenomenon in China is that almost the entirety of the middle class is first generation middle class. Therefore, their spending mindset tend to be much more susceptible to economic outlook. They have the tendency to splurge when things look good, and pull back dramatically in a downturn like this, as they all grew up poor and have elderly parents and children to support
Increasing the rent will help
I think $TPL and $LB have the strongest moat in the market.
Good video. But I must correct you. The Chinese don't/ can't own any real estate. Real estate is owned by the state in China. Real estate being land, of course.
You can buy any luxury item under a bridge in NY for pennies
Well, it makes sense.
Yeah, nobody is falling for status items any more. It’s 2024.
Are you related to Bessel Van Der Kolk in any way??
*_Good Times brings Novelty/Entertainment - Bad Times brings DIY Escapism_*
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Even if was a billionaire I still wouldn't buy luxury brands. I never understood whats so big fuse about these over expensive products ??
A lot of not very rich people buy luxury good to make themselves feel good, to flex, etc. I suppose that a chunk of their customers can’t afford it anymore due to income loss and that a chunk have put off purchases due to sentiment about job security and income/wealth.
03:10
Luxury brands keep poor people poor