There are certain sectors which have a strong relationship with the stage of growth of the economic cycle – or, to put it another way, the per capita income of a country has a relationship with how the sector performs. As the per capita income moves up, the broader topline of the sector also moves up – and at a faster rate. Just to put this in perspective: Today, demand for an air ticket is higher than it was 10 years ago. Similar is the case with expensive cars. It is not only about high-ticket items, even demand for branded garments is higher than what it was just a few years back. As an investor you can only buy a few stocks. So, you need to be careful about what you are buying, why you are buying it, and whether it should be bought at all.
