South Korea’s Kospi has emerged as the shining star among all stock markets so far this year, skyrocketing to fresh lifetime highs last week while Dalal Street and other markets crashed. As investors minted massive sums of money from the K-Street, demand soared for luxury goods like Rolex watches, Bentley cars and more.
The “wealth effect” resulting from the surging stock market has most visibly spilled over to ultra-premium consumer goods, including department store luxury items, jewelry, accessories and watches, according to a report by Seoul Economic Daily, which quoted experts as saying that the wealth effect could multiply as the share of financial assets structurally rises.
