That means you’re out of luck if you were planning to run out this afternoon and buy a dozen Louis Vuitton bags. But really, the limits aren’t because people just can’t have enough luxury bags, reports Eric Wilson of the New York Times. The real reason is our falling dollar.
Because the dollar has slid in value relative to currencies such as the euro and pound, many foreign buyers are treating the United States as one giant outlet mall. They can get handbags here for (relatively) dirt-cheap, then re-sell them in Asia and Europe at a premium. Companies such as Prada and Gucci want to discourage that, as they’ve been trying to reach customers in those other countries by opening new shops.
The dollar vs. the euro:
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.