You would think I asked her to go to school wearing a dunce cap!
“Dad, there’s no way I can wear that sweatshirt! It’s NIKE!”
Rebekah, my thirteen year old, was late for cheer practice and needed a sweatshirt. I found one next to the front door and tossed it to her.
She was mortified.
|Ticket To Easy Street, Booked In Your Name|
Would $2,316,600 put you on “Easy Street”? That’s when you have money to do what you want to do, when you want to do it. Money like that means you don’t have to listen to anybody. Money like that buys you freedom. Total… full freedom. There’s no guarantees, certainly — but this until-now secret “penny stock formula” could put you on the path to an exceptional $2,316,600 fortune. Starting today. It’s cheap to get started. You don’t need anything special. Just the desire to get rich and a small stake to begin. Get a shot at your own personal ticket to “Easy Street” -- CLICK HERE NOW.
“Can’t you see I’m wearing Adidas pants? And the three stripes on my shoes? Look at this hat!”
Yep, the girl was decked out in Adidas gear. And of course you can’t mix brands and toss a Nike sweatshirt in the mix. What was I thinking??
Today, I want to show you how brand loyalty among teens (and adults), can actually put cash in your designer jeans pockets, thanks to American consumers with money to spend…
Americans Ride the Wave of Wealth
There’s a big wave of spending spreading across the U.S. right now.
It’s tied to what I’ve called the “wealth effect” which has been lining the pockets of American citizens and spurring shopping sprees as we get ready for summer.
The wealth effect started with the stock market moving steadily higher for nearly a decade.
Higher stock prices have led to big profits. And that’s true for people who have brokerage accounts, for people who simply invest in mutual funds, and even for people who don’t have anything to do with financial markets.
A higher stock market has made consumers and businesses more confident in our growing economy. And as consumers spend more, businesses are naturally selling more. This has led to one of the strongest job markets seen in modern history.
Of course, the more people that are employed, the more money people have available to spend. And that spending simply adds more fuel to the growing economy.
Toss in a housing market that features higher prices for homes, and you now have homeowners who can tap into lines of credit to free up even more spending money.
In short, this is a great environment for Americans to build wealth.
And as that wealth is being built, cash is naturally being spent.
The only question is WHERE shoppers will spend that cash…
Apparel, Brand Loyalty, and Amazon
It’s not hard to make a case for higher consumer spending. For generations, Americans have earned a reputation for spending whatever money they can get their hands on. And based on the research I’ve seen, we’re still very much a “consumer nation.”
But that doesn’t mean that all retail companies are doing well.
There’s a giant elephant in the room when it comes to retail companies and investing in retail stocks, and that elephant’s name is Amazon.
Amazon has made it very difficult for many “brick and mortar” stores to stay in business.
You’ve already heard the story of how Amazon is killing department stores, how people are looking at electronics in physical stores and then going home and buying their favorite gear on Amazon, and how this giant e-commerce company is changing everything.
Well not everything has changed.
When I was a kid, Nike Air Jordan’s were the shoes to wear. Today, I’m fond of Under Armour running gear. My kids each have their own brands that they like to wear. And in the more affluent areas of any city, you can see people walking around with their favorite brands proudly displayed as status symbols.
It doesn’t matter how strong Amazon is as a company, some people still gravitate toward their favorite apparel companies. And stocks of these popular apparel companies are moving higher, despite (and in some cases because of) Amazon’s dominance.
Get on the Brand Name Bandwagon
Popular apparel brands aren’t all being hurt by Amazon.
Some companies choose not to sell their apparel on Amazon, so the only way that you can get your hands on their styles is to buy the products direct.
Other companies partner with Amazon to sell their brands through the biggest e-commerce market in the U.S.
Regardless of where the apparel is sold, popular apparel brands grow their profits by making clothing that appeals to today’s consumers. And with plenty of consumer spending to tap into, the best apparel stocks have been moving steadily higher.
With jobs plentiful, the stock market stabilizing, and the housing market continuing to move higher, don’t look for this apparel stock trend to change anytime soon.
Some of my favorite apparel stocks include
American Eagle Outfitters (AEO) — a popular brand that my teens have been gravitating towards.
Lululemon Athletica (LULU) — yoga-inspired apparel that is priced WAY above my family’s budget (but popular with affluent consumers).
Columbia Sportswear (COLM) — outdoor gear and clothing for those who explore, and those who want to LOOK like explorers.
So this year as the weather starts getting warmer and you think about updating your wardrobe, consider funding your next shopping spree with profits from these wealth effect winners!
This article originally appeared on The Daily Reckoning.