Las Vegas stays strong despite economic weakness

There's a lot of talk about a weak economy, the mortgage meltdown, and a credit crunch, but apparently that isn't stopping people from heading to Las Vegas. According to the New York Times, "some of the city's largest casinos are on pace for a record-setting year. In October alone, gambling revenues on the Las Vegas Strip were up 19.8 percent over the same month last year."

Casinos in other locales aren't doing so well, with some reporting declines in gaming revenues of 5% or more. Experts believe that pricey locales like Las Vegas are less vulnerable to consumer malaise precisely because they cost more -- the mortgage mess just isn't hurting people with a lot of disposable income, at least for now.

Day trip locations that target lower-income gamblers aren't faring nearly as well.

This may have broader implications for investors. If higher income consumers still have the money to drive Las Vegas gaming revenue growth, they also probably aren't going to be cutting back on luxury products like bags from Coach, Inc. (NYSE: COH), which has seen its stock beaten down by worries about consumer spending. The international tourists that are giving Vegas revenue a boost could also help luxury goods companies.

If Coach won't see its sales and margins hurt by an economic slowdown, the stock is cheap.