Under cost pressure, spending gets reallocated toward faster emotional returns. On Wednesday L’Oréal reported 6.7% like-for-like sales growth, beating expectations as demand held strong across the U.S., Europe, and emerging markets. This is often described as the “lipstick effect” and it’s proving literally true. Consumers cut back in many areas while continuing to spend (often even spending more) on small indulgences. Like lipstick and other cosmetics. People aren’t simply spending less...