While most of the world's elites are bathing in a sea of liquidity and propagandizing the status quo to keep the dream alive, Richemont Chairman Johann Rupert has unleashed a torrent of uncomfortable truthiness this morning:
- *REMGRO CHAIRMAN RUPERT 'VERY CONCERNED' ABOUT GLOBAL ECONOMY
- *GLOBAL ECONOMY 'VERY, VERY PRECARIOUS,' RUPERT SAYS
- *WORLD HEADING FOR 'BIG INFLATION' OR `BIG DEPRESSION': RUPERT
- *GLOBAL ECONOMY HEADED FOR 'TEARS': REMGRO, RICHEMONT CHAIRMAN
- *RUPERT SAYS HIS BIGGEST CONCERN IS JOBLESS GROWTH
And while things are good now, the owner of the Cartier brand warned if the global economy doesn’t do well, Richemont is not well positioned.
"It is very, very precarious," Rupert said at the annual general meeting in Cape Town of Remgro Ltd., where he is also chairman.
"There will be tears, but we don’t know when, and we don’t know whether it’s going to be a big inflation or whether it’s going to be a depression. Just hedge your bets."
"The luxury goods market is very cyclical and relies on consumers discretionary spend,” Rey Wium, an analyst at Renaissance Capital in Johannesburg, said by telephone. "When times are tough, consumers will tighten their belts."
Perhaps it is time to book at ticket on the Freedom Ship?