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Looking For A Chinese Hard Landing? It Will Show Up In Luxury Goods Stocks First

The boom in luxury goods over the past decade is a China story. Emerging market buyers—and especially wealthy Chinese buyers—have been the driving force behind the boom in everything from high-end handbags to fine wine.

Let’s take a look at some examples starting with the granddaddy of all luxury goods companies, LVMH Moet Hennessy Louis Vuitton (LVMUY). LVMH, which is based in France, is the largest luxury conglomerate in the world. It’s best known for its expensive Louis Vuitton purses, but it’s also the owner of the Dom Pérignon and Moet & Chandon champagne brands, the Hennessey cognac brand, and the Glenmorangie scotch whisky brand, among others. It owns the Tag Heuer and Zenith lines of high-end Swiss watches, among others. LVMH even runs a partnership with global diamond leader De Beers. Together, LVMH is a one-stop shop for luxury goods.

It’s also completely dependent on spending… Read More …