Have you seen the price of Polo Ralph Lauren stock lately (ticker RL)? It closed today (5/15/07) at $92.19! This price is up from around $60 a year ago. What possibly could be causing the amazing increases? Check out the chart courtesy of AOL Money & Finance.
2 comments:
Matt,
Do you think that Ralph Lauren is experiencing a higher then normal stock value because of the higher than normal consumer confidence, higher wages, and in tight employment market. All these are great signs for retail products, especially in a bull market. I think the Fed is slowing the economy down to a moderate pace and as this happens in an overvalued market, we could surely be seeing the high of RL.
Brad, I thought the FED was debating whether or not to reduce interest rates to increase the economy. You could be very correct though--I know you are wise beyond your years on economics & monetary policy. I also believe that RL stock has increased because they have been buying back rights to their name from other companies such as Reebok who used to have the rights to Polo Sport for shoes. The point on consumer confidence is dead on I believe...the entire luxury market is booming.
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