Luxury Retail Stocks Fall From Favor, Lag S&P 500

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Oct. 21 (Bloomberg) -- Bloomberg’s Alix Steel looks at why luxury retail stocks have lagged the S&P 500 despite improved confidence for high-end consumers. She speaks on Bloomberg Television’s “In The Loop.”

No one suggesting that idiocy is a long-term market prescription but while congress may be bad for the country it has been good for the country's investors.

It certainly has been.

Staying on the markets, stocks continued to trade at record levels here.

High-end retail stocks, luxury, that is what we are talking about.

Alix steel joins us now.

What is this?

A warning sign?

It is a bit more worrisome but it makes this earnings season all the more important for this group, but investors have been skeptical.

Shares of nordstrom's have been lagging behind the s&p by about 11 points since july.

This is despite the fact that sentiment among the richer americans is actually pretty good.

This is the only income group with a -- positive grading.

What is the big problem?

Wells fargo says that there has been a wallet share shift, they are buying more on electronics and cars rather than high-end clothes?

Earnings from nordstrom, for example, will be down about seven percent since january estimates.

Ralph lauren, similar story, five percent lower.

The real question is are these numbers the result of a weakening economy?

Or are these guys just losing market share?

Coach, for example, has been losing market share to michael cores.

The positives?

If you are trading below the 20 average at dividend, many are making the argument that you get paid to wait while waiting for -- while waiting for the turnaround on market share.

The thing is if the economy continues to go up, they say it might be a red flag for the group that is really tapped out in terms of potential growth.

Alix steel, thank you, market reporter on luxury consumers.

Coming up, younger consumers are

This text has been automatically generated. It may not be 100% accurate.

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