Despite this country's economic situation, luxury spending is on the rise. Tiffany's has expanded their empire with six new stores. Rolls Royce, Lamborghini and Bugatti have two year waiting lists. Can you imagine waiting two years for your now two year old Bugatti Veyron after spending $4.5 million? Tires for that car are $75K each! Although the middle class is shrinking at an alarming rate, there exists two elements; one that is not grossly affected by economic hardships and the other that may be in a state of of denial.
Another indicator of America feeling flush is the soaring sales and share price of Whole Foods. Whole Foods is America's No. 1 "luxury grocer." Its business is selling expensive food and business is good. Profits have climbed more than 33% in each of the last three years.
The chart below shows that investors are paying attention to the trend. Shares of Whole Foods are up 1,200% since the beginning of 2009. They just hit an all-time high. We see all this spending on "luxury food" and think things "can't be all that bad" with the U.S. economy.