Daniel Langer Interviewed on Luxury Stocks with Business Insider
A group of European-listed luxury stocks dived on Tuesday morning and continued to drop Wednesday, casting doubt over whether this corner of the market is as recession-resilient as investors once thought.
According to Bloomberg, the dip in the share price of major players including Hermès, LVMH, and Gucci-owner Kering wiped out around $60 billion in market value.
“Clients are buying an extended version of themselves, which in times of uncertainty is even more valuable,” said Daniel Langer, professor of luxury strategy at Pepperdine Graziadio Business School and CEO of Equite Consulting.
"Even luxury clients with less spending power tend to continue, to a large extent, making luxury purchases in times of volatility and economic downturns.”
Luxury brands have traded off the perception of being reassuring and protective in uncertain times. Hermès is an extreme example of this, its handbags which sell for upward of $10,000 are often seen as more solid investments than gold or the stock market.
Read the full story on Business Insider.