The Global Luxury Index Has Been Red-Hot

Inequality continues to be a major issue in the world.

And it has manifested very clearly within the the stock market.

Check out S&P's Global Luxury Index, which consists of 80 large publicly traded companies "engaged in the production or distribution of luxury goods or the provision of luxury services." Names include Daimler, Diageo, Nike, LVMH-Moet, Richemont, BMW, Las Vegas Sands, and Pernod-Ricard.

In the last five years, the luxury index has delivered 31% in average annual returns. That compares to more modest, albeit impressive, 21% returns in the S&P 500.

So, what's going on here?

Jeff Gundlach would blame the Fed's easy monetary policy, which he argues have benefited the rich more than the poor.

"Obviously, QE has something to do with wealth effects spilling into luxury retail," said Gundlach in a March 11 webcast.

Here's the chart from RBC Capital's Jonathan Golub.