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Peter Atwater on Consumers’ Decision-Making Process

Masters in Business

NOTE

The Impact of Luxury Items and Indicators on the Economy

People often criticize me for obsessively tracking the prices of luxury items like Rolex watches and Porsches. However, I believe that the behavior of the top one percent has a significant influence on the overall economy. For example, when I observe the success of Carnival Cruise Lines, it indicates the well-being of the upper middle class, as travel requires careful planning and financial commitment. Interestingly, despite widespread negativity in sentiment measures, there has been a surge in boat sales. This contradiction perplexes me, but I believe it may stem from different demographic cohorts. Regardless, it is clear that people are willing to invest significant amounts of money in their hobbies, such as boating.

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