Luxury Bags: Buy the stocks instead

I really love branded items, and I lust after LV, Gucci, Aigner and other brands. However, this is limited to looking at them rather than buying them, because I don’t think I can live with the thought of splurging on such nice stuff, unless I am one of the 2121 people who earn $1 million a year, with 383 just joining this club according to the Straits Times.

However, I think there is a way to lay your hands on this huge luxury market apart from buying the items. There is a Deusche Börse World Luxury index that tracks 20 luxury stocks, and another lifestyle index by Merrill Lynch which tracks 50 such stocks according to Fortune.

Over the past five years, some luxury brands stocks have risen multiple times. Coach for example had made a huge whopping return of 824%, and Porsche had made 369% in the stocks price. 

Coach Leather Satchel

The only problem when finance companies announce these to the whole world, it may have been too late to stick your fingers into the pie, since the market may have peaked. Well, I think I would rather put $3000 into a LVMH stock than get a similar LV bag that may go out of fashion in a season, and see the money grow.

Sarah Tan – SingaporeProfit.com

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