The S&P 500 Luxury Goods Index has experienced a torrid start to the year, falling by nearly 5%. However, I wouldn’t be worried about my luxury goods stocks if I were you. Luxury products are what are called veblen goods. Given the consistent spending power of their end markets, veblen goods possess the latitude to perform throughout the economic cycle. Sure, a horrific economic downturn will likely detract from luxury goods sales. However, luxury goods sales will be unencumbered by typical troughs in the business cycle. Moreover, most luxury goods companies are mature by nature, meaning their dividend distributions are compelling,…
