The super rich are spending less on yachts, jewellery and private jets thanks to recent falls in the stock market, Goldman Sachs says.
"We find large effects of the stock market on luxury spending," Goldman economist Daan Struyven wrote on Wednesday.
Struyven says his team's analysis is consistent with a "substantial" negative wealth effect on a measurement called the personal consumption expenditure.
The stock market and spending on luxury goods are highly correlated, so the lower the market goes, so goes spending.
That's according to Goldman Sachs economist Daan Struyven, who wrote in a note on Wednesday that the dusk of a near decade-long bull run in the US equity market will weigh heavily on spending among the wealthy, negatively impacting the world's biggest economy.
"We find large effects of the stock market on luxury spending," says Struyven, who sees a strong drop-means-rich-spend-less-on-yachts-jewellery-2019-1 between stock price changes and spending on "jewelry and watches, pleasure boats.