The Great Vince Farrell and I talked about the new high list on Squawk On The Streetthis morning. A significant number of S&P 500companies are hitting all-time highs. The S&P 400has been a stellar performer having benefitted from surging mid-cap share prices.
Studying the list of S&P 500 that have hit their all-time high since the recovery began in July is revealing.
The first 25 are Consumer stocks.
A couple of things to note:
First, several of the retailers are "high-end" retailers, which makes sense because there has been a dramatic increase in wealth concentration in this country over the past 10-20 years. The benefits of our economic expansion over that time frame have largely accrued to the wealthiest Americans, and these Americans have had much more money to spend on luxury items. In other words, the consumers that typically shop at these types of stores have not been nearly as affected by the economic weakness - instead, the rich have gotten richer. I would characterize Coach, Polo Ralph Lauren, Tiffany, and Este Lauder as "high-end" retailers.