Sometimes owning a stock means the price stays in a small trading range, the company makes money or profits but is not seen as a growth story. Then some good news from the customers of the stock sends the stock price up.

In an article by Mimosa Spencer, Mateusz Rabiega and Alun John of Reuters, LVMH shares had their best day in more than 2 decades or 20 years on improving demand in China.

The world’s top luxury group, which owns brands from Louis Vuitton bags to Moet champagne soared 14% and it beat forecasts for its quarterly sales.

Luxury sector shares bad begun some transaction in recent weeks, with expectations that sweeping management and creative overhauls will bear fruit.

Sales in mainland China, a traditional growth driver turned positive. Chinese nationals account for about 1/3 of global luxury sales at LVMH, as well as the sector as a whole.

In addition, a new report stated that those in America who make more than $$250,000 a year or the top10% of the earnings were powering 50% of consumer demand. Many were staying at luxury hotels, and spending money on luxury goods.

Linking to dividend paying stocks, in the 1930’s John Dillinger was asked why did he robbed banks, and he said that is where the money is. Times have changed but asking where those that have disposable income spend their money can mean those places are good investments. There is homework to be done, such as how much sales need to be done before profits are made? but you are on the right track.

There are more questions than answers, till the next time – to raising questions.