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It has almost a $1 billion in cash on the books, and just $300 million worth of debt. Shares have soared year to date, up almost 35%, compared to a loss of 0.73% for the S 500. Ralph Lauren has been the epitome of what is working in this country: catering to the wealthy. Ralph Lauren has brands that are aspirational in nature, and continues to benefits from the fruits of its labor. Traders who believe that Polo Ralph Lauren will continue to grow strongly might want to consider the following trades: Luxury providers such as Tiffany's (TIF) and Coach (COH) will benefit. Consider buying the dip in these names. Also consider really high end names, like Louis Vuitton Moet Hennessy, Hermes, and Prada. Bearish: For the middle class. If the Fed enacts a QE3, it will continue to crush the dollar. Stocks will rise, but the purchasing power of the middle and lower class will continue to evaporate into nothing. Consider gold stocks such as SPDR Gold Trust ETF (GLD) and dollar stores like Dollar General (DG) which will see increased traffic and consumers try to squeeze their heard earned dollars.
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