Luxury Brands in CHAOS! Is This the END of Expensive Handbags?!

Tariffs? More Like Terrible iffs!

Alright alright settle down chat. Asmongold here and we gotta talk about something serious. It's about the rich people stuff okay? The fancy bags the overpriced belts all that jazz. Apparently these European luxury brands the ones that charge you more for a logo than the actual material are sweating a little. See Uncle Sam or should I say President Trump slapped some tariffs on goods coming from Europe. Now these companies LVMH Richemont Kering Hermes they're all feeling the pinch. Shares are slippin' and slidin' faster than my hairline during a stressful raid night.

90 Day Pause? More Like 90 Second Pause!

Now Trump did announce a 90 day pause. He went all "Liberation Day!" and lowered the rates to 10%. But let's be real chat. 90 days is like a blink of an eye in the grand scheme of things. Are we supposed to believe that this pause will fix everything? Nah man. It's like putting a band aid on a severed limb. The fundamental problem remains. These companies aren't gonna pack up and move to America just because Trump said so. They'll just pass the costs onto you the consumer even though the wealthy shoppers will likely not even notice.

Recession? Incoming!

But here's the real kicker boys and girls. It's not just the tariffs. Oh no it's the big R. Recession. JPMorgan is saying there's a 60% chance of a U.S. and global recession this year. 60%! That's like saying there's a 60% chance I'll skip leg day. Pretty high right? Their CEO Jamie Dimon is even saying the market turmoil has made a recession "likely." Uh oh...

Luxury Demand? More Like Luxury De mand!

Deutsche Bank is saying that this economic uncertainty will weigh on confidence and postpone any recovery in luxury demand. So basically people are gonna be less likely to drop thousands on a handbag when they're worried about losing their jobs. Makes sense right? Unless you're one of those people who thinks a Gucci belt will magically protect you from layoffs. In that case well... you do you.

China? More Like Chi nah!

And it's not just the U.S. chat. China is also a problem. Chinese demand was already kinda weak and now these 125% tariffs are gonna make it even worse. So these luxury brands are getting squeezed from both sides. They were hoping for a turnaround after some decent fourth quarter results but Deutsche Bank is saying that might just be a fluke. The anomaly not the trend. Oof.

Who Survives? The Rich...er!

So who's gonna survive this economic apocalypse? Apparently Hermes and Burberry are in a better spot. But Richemont and Moncler might be in trouble. So if you're planning on investing in luxury goods maybe stick with the classics. Or you know just buy more gold. Because gold never goes out of style unlike my hairline. Alright that's it for me chat. Remember stay bald and stay informed.