What to Buy At Stock Market All-Time High: Get Long Rich People - skyscraper

What do you buy as the U.S. stock market hits all time highs? 

Get long rich people.

Since Election Day, the Dow, Nasdaq, and S&P 500 are up 15%, 13% and 12% respectively. This financial market buoyancy is a direct shot in the arm for wealthy people – the top 10% of U.S. households by income own 85% of U.S. financial assets. 

What to Buy At Stock Market All-Time High: Get Long Rich People - wealth distrib 3 3 17

Stock Market ↑ = Wealthy Consumption ↑

#Luxury #Consumption #StockMarket

Financial market optimism is already showing up in the consumption patterns of America's well-heeled. "Luxury goods consumption accelerated +510bps to +4.3% year-over-year in January, which marks the fastest pace of growth in 14 months," writes U.S. Macro analyst Christian Drake in today's Early Look

Compare this against total real consumption growth which slowed -20 basis points in January to +2.8% year-over-year. In short, the "wealth effect" – when a rising stock market spurs income and consumption growth – represents an upside catalyst for domestic economic growth in 2017. Stay long rich people.

What to Buy At Stock Market All-Time High: Get Long Rich People - CoD 6