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Animal Spirits Podcast

Talk Your Book: Investing in Luxury

Oct 30, 2023
Brendan Ahern, CIO of Kraneshares, joins Michael and Ben on this episode. They discuss the creation of Kraneshares Luxury ETF, demographic trends and the wealth effect, challenges in investing internationally, luxury dynamics in a recession, and more!
32:43

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Investing in luxury stocks can provide exposure to the expanding global luxury market and the continued rise of affluence.
  • Luxury ETFs offer investors a diversified and differentiated approach to accessing the luxury market, providing ease of access to international luxury companies and professional portfolio management.

Deep dives

The Growth of Global Luxury Market

The global luxury market is projected to double from 2020 to 2030, reaching $570 to $615 billion. This growth is driven by increasing consumer spending and rising wealth, particularly in emerging markets like China and India. The market includes various industries such as leather goods, jewelry, accessories, skincare, cosmetics, and travel. Luxury brands that have been around for centuries, like Hermes, continue to thrive, while newer companies like Montclerc have emerged as popular luxury fashion statements. The market's growth is fueled by a combination of factors, including expanding urban middle-class populations, younger wealthy consumers, and the allure of aspirational luxury goods.

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