I've written here several times about the rising risks in holding luxury-good-company stocks. A few titbits in the newspapers over the weekend make the case for selling out ever more clear.
First, a small story in the Guardian. It notes the case of state official Yang Dacai and his watch collection which I tweeted about last week. Yang was shown in pictures online wearing, onseveral different occasions, a variety of different ludicrously expensive watches, none of which he should have been able to afford on his official salary. He is now being investigated by the party's provincial discipline inspection committee (which doesn't sound that nice).
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