05-21-2015, 12:29 PM
It does make considerable sense. One discovers a trend in the always fickle branded clothing/footwear/fast food, whatever, market. What is hot and growing sales? Jump on board in the stock market. Spot the trend early, and you can ride a wave, because others will discover the trend as well and get on board also.
These trends could last quite a bit and as long as they're expected to continue, it is a bit of an afterthought how expensive the shares already are.
Branding is powerful, it can be spread to other items and other markets, as long as it's not spread too thin.
This works until it doesn't. At the first sign of a trend flattening (let alone reversing), or some managerial incompetence or overreach, the sell-off is likely to be rather brutal..
No sign of that here though, at least not yet.
These trends could last quite a bit and as long as they're expected to continue, it is a bit of an afterthought how expensive the shares already are.
Branding is powerful, it can be spread to other items and other markets, as long as it's not spread too thin.
This works until it doesn't. At the first sign of a trend flattening (let alone reversing), or some managerial incompetence or overreach, the sell-off is likely to be rather brutal..
No sign of that here though, at least not yet.