Tuesday, December 11, 2007

Looking for A Strategy to Get Rich Off The Rich?

Invest in the "Living Large Index," a stock index of businesses that cater to affluent consumers: luxury-goods makers, higher-end retailers like Tiffany and Saks, and travel and entertainment companies. Read about in the NY Times Business Section here.

A completely different investment strategy is offered by ultra-hip mutual fund company Thrasher Funds, which recently introduced the "GendeX Mutual Fund." According to its website:

The GendeX Mutual Fund offers a group of more than 60 million Gen X and Y'ers largely overlooked by the financial market place until now, the opportunity to leverage their youth along with a disciplined investment and savings strategy to help use what they already know to engage the stock market.
We created The GendeX Fund for any investor who does not feel a connection to the traditional investment establishment. Welcome Home.

Read more about it here in today's
NY Sun.

One question: "Engage the stock market?"


At 12/11/2007 8:47 PM, Anonymous Anonymous said...

With regard to the "Living Large Index", the record of previous recessions would seem to indicate that rich people stop spending like everyone else.

Top designer, Bob Mackie had his haute couture business implode overnight in the last recession. He designed the costumes for Dynasty and had a thriving business in high end women's evening wear. Wealthy matrons started wearing last season's dresses. The only thing that kept him alive was a perfume called Ruffles sold to the mass market.

The boat building and marina industries were also very hard hit during the last recession. Rich people put those yachts in storage rather than sale.

I think this might need a bit more thought.


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