Crypto Wealth Hits The Next Generation Of Super Spenders

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Luxury investors worried about China must now look elsewhere for new pockets of growth: the United States

Part of the outperformance of luxury stocks such as Hermes International this year was due to strong US demand for expensive designer handbags, jewelry and clothing. However, it’s not just about pent-up demand post Covid-19, according to Jefferies International Ltd.

There is an increase in the value of assets, from stocks to real estate and contemporary art, and more importantly, there is a significant impact of cryptocurrency wealth that could benefit manufacturers of commodities. luxury, Jefferies analyst Flavio Cereda wrote in a note on Wednesday, detailing comments from a recent trip to New York and Florida.

“The United States continues to surprise,” and the resilient momentum in the country could help mitigate China’s current volatility, Cereda wrote.

Today’s American luxury buyers are younger and richer than in the past, Cereda wrote. He estimates that local “super-spending” is $ 20 billion of the total, more than double that of Europe, although still well below China.

One company that is expected to generate profits is the owner of Louis Vuitton LVMH, which Cereda describes as a “post-pandemic structural winner,” with overexposure to North America relative to China. Gucci owner Kering SA is also among the luxury players who stand to benefit, he wrote.

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