‘$360 billion’: One investment booming

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Since the pandemic there’s been huge growth in the luxury goods market around the world, with an increase in the amount spent on luxury fashion, watches, and fancy handbags to over US$360 billion last year.

A surprising investment has skyrocketed since the pandemic and it could be a good opportunity for everyday Aussies to make some money.

The luxury goods market is a difficult one for new entrants to break into, and this along with the fact there are a limited number of existing companies in this space has sparked interest from investors and as a result there’s been strong demand for shares in these luxury brands, driving their share prices upwards.

Further, if you’re choosing one specific company to invest money with, there is also company specific risk. If the company you choose to invest into makes bad choices, follows the wrong strategy, or gets cancelled, your investments will suffer. The reason this seven to ten year time frame is suggested is because if there is a prolonged investment downturn, it can take this long for things to get back on track.

Everyone’s situation is unique, but there is one way that everyone can plan smart with their investing. If you take the time to map out where your money is at today and how it’s likely to progress into the future, that gives you a baseline. Once you have your baseline set, you can look at the impact of doing different things with your money and investing.

 

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