Why Oil is going down?
Today from Quatz
China hit a record stretch of deflation. Overcapacity, cheap commodities, and sluggish domestic demand were blamed for official figures showing China’s producer price index fell 2.2% in October from a year earlier, compared with an expected 2% fall—the 32nd consecutive monthly drop. Consumer prices rose 1.6% in October, matching expectations and remaining unchanged from September.
The world is cooling down! Growth is shrinking and the reason is overcapacity & automation.
This is the reason why Brands& Luxury have been going up. The sales price of a Cartier watch has been going up forever. If the cost of putting together the watch is going down Cartier margin is expanding. The market already recognized that. Is there more money in the table? I guess yes because i see deflation in the future. If you have a brand you can survive if you are a commodity producer (price taker) you have a problem.
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