Glamsplainin' The Lux List
INFORMATION & COMMENTARY FOR July 6, 2018
Yes. The Lux List is an actual thing!
By now it should be pretty clear that we love the lux life. In fact, it’s our #Goals. For us it’s more than a vibe. It’s an actual index that we track. The mamma of all indexes, the S&P 500 , which is a measure of the broad U.S. stock market has a prettier cousin...the S&P Global Luxury Index. This VIP list is comprised of 80 of the largest publicly-traded companies engaging in the production or distribution of glam. Here’s a little about them from their Tinder profile...
The list includes Nike, LVMH (the group owning all the feels: Luis Vuitton, Moet, Hennessy, Sephora), Daimler, Tesla, Kering Shiseido, and Estee Lauder (owning all the glam: MAC, Aveda, Clinique) to name a few. The lux listers are represented by two sectors: 80% consumer discretionary (things that are bought with play play money) and 20% consumer staples (things that are absolutely necessary). These companies are like a Kardashian on Instagram, they are huge and when they move so do the other companies that deal in lux. How huge? Great question.
When describing the size of a public company in regard to their financials, we speak in terms of market capitalization. Market capitalization or market cap is a lux name describing the market value of a company’s outstanding shares of stock. If you want to do the math, you take the current stock price and multiply it by the number of available shares floating around. This concept is important because you would think that the higher the stock price of a company, the larger the company...not even. Company A can have a higher stock price than Company B, but if Company A has less shares of stock then company B, it’s not bigger. The average market cap of the lux listers is 20,786 billion, which makes them large cap (because their market cap is over $10 billion).
We are always following these icons, but things get really interesting during earnings season. Earnings season, which is kinda like fashion week for stocks is about to kick off so stay tuned for information on how these companies performed in the second quarter.
Have a great weekend Savvies!
We Ask and Our Squad Answers
Our squad is comprised of ten Wall Street experts from the top asset management firms. Each week we ask them a question, and they poll in!
Do you think we are at the top of the market expansion?
100% of our Savvy Squad says NO.
80% explain that we have a little more expansion before the top.
Agree with the squad? Tell us on Twitter #SavvySquadPoll
Q2 (Second financial quarter) is officially over and you know what that means!!!! Earnings season! Stay tuned for the next few weeks as we Glamsplain™ our way through Q2 earnings.