US data
Mark Perry, a researcher at the American Enterprise Institute, calculates that college tuition and textbook prices have increased by 200% since 1996, compared to just 55% for the all-items consumer price index [1].
Note the goods/services that well - companies in operating in these sectors will have pricing power. Hence, stocks of such companies are likely to do well. e.g. textbook publishers, childcare, heathcare, food and beverages, housing (housing is important, since it must be the highest spend item of consumers in terms of their income share compared to all the other goods/services).
Note that even 'food & beverage' did well over the 20 years. That means, they have pricing power too. Companies in this sector should do well.
Note the goods/services that did not do well - companies in these sectors do not have pricing power. Hence, stocks in these sectors may not do well. e.g. textiles, TVs, cellphone services, cars, household furnishings (although retailers of household furnishing like IKEA may do well).
http://www.zerohedge.com/news/2016-10-04/education-bubble-harvard-mba-worth-500000?curator=alphaideas&utm_source=alphaideas
Mark Perry, a researcher at the American Enterprise Institute, calculates that college tuition and textbook prices have increased by 200% since 1996, compared to just 55% for the all-items consumer price index [1].
Note the goods/services that well - companies in operating in these sectors will have pricing power. Hence, stocks of such companies are likely to do well. e.g. textbook publishers, childcare, heathcare, food and beverages, housing (housing is important, since it must be the highest spend item of consumers in terms of their income share compared to all the other goods/services).
Note that even 'food & beverage' did well over the 20 years. That means, they have pricing power too. Companies in this sector should do well.
Note the goods/services that did not do well - companies in these sectors do not have pricing power. Hence, stocks in these sectors may not do well. e.g. textiles, TVs, cellphone services, cars, household furnishings (although retailers of household furnishing like IKEA may do well).
http://www.zerohedge.com/news/2016-10-04/education-bubble-harvard-mba-worth-500000?curator=alphaideas&utm_source=alphaideas
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