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Luxury retail stocks are improving, though the proposed tariffs under President-elect Trump’s administration could continue to put these retailers under pressure.
Jerry Storch, Storch Advisors CEO, joins Madison Mills and Seana Smith on Catalysts to discuss what could be ahead for the luxury retail sector under Trump 2.0.
Despite widespread concerns, Storch predicts that Trump's tariffs won't have a severe impact on luxury retail. Storch explains that many goods from the luxury retail sector can be characterized as "Veblen goods," wherein demand increases as price increases.
He elaborates, "It might even be positive for some retailers in particular ... [these luxury providers] have been very successful in passing along price increases for quite some time."
However, Storch agrees that uncertainty is high and warns investors not to "jump to any conclusions."
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
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This post was written by Josh Lynch