“Look at me – I’m a thieving enemy of the people”

If you lived in Italy today would you buy a new super yacht? I suspect you would not. Why? Because the taxman might see it and if he did he might pop round to ask exactly how you paid for it. And given the size of the black economy in Italy, that might be a question you didn’t want to answer. But it might not be just yachts you are shying away from splashing out on. And your reluctance to spend may have nothing to do with being Italian or owning Italian assets. Across the globe there are signs that high-end buyers of luxury goods are closing their wallets. Tax is one reason. Another is that ostentatious wealth is no longer admired or accepted in the way that it was. And that’s bad news for luxury goods shares.