Proof that People are Ready to Speculate in Stocks

Folks aren’t just spending money with “high end” retailer chains… they’re speculating in them as well.
Several days ago, we wrote about Taubman Centers (TCO). Taubman is a huge shopping mall operator. It counts “high end” chains like Macy’s, Apple, and Ralph Lauren as tenants. We pointed to the surging shares of Taubman Centers (TCO) as “real world” proof that the U.S. economy is doing better than pessimists would have you believe.
People are also paying “high end” prices in the stock market. For proof, we look at shares of “lululemon athletica.” Lululemon (LULU) is a rising star in athletic wear. Its products are a joy to wear… but ludicrously expensive (think $100 for a pair of yoga pants). LULU has traded publicly for less than five years.
As you can see from today’s chart, people like the idea of owning LULU. Shares have quadrupled in the past two years. They now trade for more than 60 times earnings. It’s proof that people are not only willing to buy expensive clothes right now, they’re willing to buy expensive stocks.