Mad Money Machine

by Paul Douglas Boyer

Cramer’s Luxury Index

Last Thursday on Mad Money, Jim Cramer introduced an index of luxury goods firms in order to track if the economy could be in for a recession.

He said if high-end consumers stop spending, the economy could be headed that way. So I took the 12 stocks he mentioned in his index and plopped them into a spreadsheet. I adjusted the prices so that the total amount of money invested divided equally amongst each one is $96,000 (because he said the index was at 96 that day — note that it is up to 98 this morning). Note that he said he wasn’t recommending to buy this index, it is just used for tracking.

Tonight I’ll add this to the Portfolio Smackdown page at the bottom.

Cramer Luxury Index: 98
Name Ticker _Price_Paid_ Shrs Buy Price LatestPrice % Gain Total_Value
Coach, Inc. COH $ 8,000.00 $ 290.28 $ 27.56 $ 28.54 3.6% $ 8,284.47
Polo Ralph Lauren Corporation RL $ 8,000.00 $ 143.47 $ 55.76 $ 57.02 2.3% $ 8,180.77
Tiffany & Co. TIF $ 8,000.00 $ 257.57 $ 31.06 $ 31.79 2.4% $ 8,188.02
Four Seasons Hotel Inc. FS $ 8,000.00 $ 152.03 $ 52.62 $ 54.17 2.9% $ 8,235.65
Orient-Express Hotels Ltd. OEH $ 8,000.00 $ 226.95 $ 35.25 $ 36.01 2.2% $ 8,172.48
Harman International Industries Inc./DE/ HAR $ 8,000.00 $ 102.56 $ 78.00 $ 80.10 2.7% $ 8,215.38
Nordstrom, Inc. JWN $ 8,000.00 $ 242.13 $ 33.04 $ 34.69 5.0% $ 8,399.52
Diageo plc (ADR) DEO $ 8,000.00 $ 115.11 $ 69.50 $ 70.64 1.6% $ 8,131.22
Toll Brothers, Inc. TOL $ 8,000.00 $ 325.47 $ 24.58 $ 25.34 3.1% $ 8,247.36
Wynn Resorts, Limited WYNN $ 8,000.00 $ 127.00 $ 62.99 $ 63.67 1.1% $ 8,086.36
Movado Group, Inc. MOV $ 8,000.00 $ 354.45 $ 22.57 $ 22.70 0.6% $ 8,046.08
Ruths Chris Steak House, Inc. RUTH $ 8,000.00 $ 443.70 $ 18.03 $ 17.98 -0.3% $ 7,977.81
$ 96,000.00 2.2% $ 98,069.14

Mon, July 31 2006 » Analysis