The New York Times reported today that the vast majority (42%) of the increase in personal income in recent years (up to 2006) has accrued to the 1-in-400 taxpayers (or, at least, tax filers) who report $1 Million or more in personal income.
This is one more fact that highlights the wisdom for luxury merchants in paying particular attention to their best customers. While we should expect that the results for 2007 and especially 2008 may not be quite so rosy, especially among those households attached to Wall Street, we also should expect that those with assets accumulated over the years will continue to spend.
At the high end of the market, spending is inspired by assets more than by income. Pay attention to the asset classes that are increasing in value (e.g., commodities, energy, etc.) and prospect among those who hold these assets.
Strike while the iron (and the steel and the cooper, etc.) is hot.
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