eli5: How markets are still going up but luxury markets, (like travel) seem to be down in the US.
In: Economics
things are generally ok-ish; but not bad
people and businesses are still spending money mostly as normal; only the excess is being cut. Maybe we’ll take a closer vacation; maybe i wont upgrade my watch, lets shop hotels; no new handbags; maybe we’ll cook at home rather than dine out.
Travel is interesting because obviously it cratered during Covid, but then it spiked after most places dropped any special testing and Covid-related entry requirements from all of the pent up demand.
Now it’s returning back to normal, but increased costs of living are probably depressing it a bit. It’s just hard to tell where normal is because it’s been a bust-boom cycle over the past five years
Travel companies built up a lot of debt during covid and while some passengers have returned Boeing and other issues are meaning they are struggling to pay off the debt.
The simple answer is – not as many people have the money to spend on “luxury market” items. If people aren’t buying your product, your stock values go down. And right now, a lot of people are still either unable or unwilling to spend as much as they used to on luxuries like travel. Other markets, though, aren’t having the same issue. People either have to buy it, or are more able/willing to buy those products.
Just because certain markets are going up doesn’t mean they all have to or will. Depends on how much profit they are making
Markets are up cus prices are up. Due to daily living expenses going up, less and less people are able to travel and spend on luxuries.
If I can save $5 a day to go on vacation by the end of the year, I go on vacation.
Now that I cant save $5 a day, due to everything costing more and my pay not going up, im not going vacation.
Big tech. These guys came out with cool new technology such as ai and thus improve their earnings, which increase stock price.
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