This is an election year, and that means we’re going to be hearing a whole lot of rhetoric about the growing divide between the haves and the have-nots. Thanks to the Occupy Wall Street movement, we’ve already heard a lot about the top 1% versus the bottom 99% and the alleged evils of income inequality in the U.S.

As investors, our task is to identify trends in the market that drive consumer decisions and that generate revenue and earnings for specific types of companies. So I’ve selected what I call “pauper” and “prince” portfolios to play this economic divide.

The pauper portion of this portfolio contains stocks that appeal to extreme bargain shoppers and to those who, out of necessity, must patronize establishments that sell low-priced goods. The “prince” portion of the portfolio is for the high-end shopper and the businesses this group tends to patronize.

It’s my thesis that companies on both ends of the pauper and prince spectrum will continue profiting from the increasing numbers of consumers who are falling on hard times as well as the growing number of consumers whose wealth is such that they are practically immune to the economy’s gyrations. That means it’s important to own stocks that cater to paupers as well as those that cater to princes.

Let’s begin with the pauper stocks.

Dollar Tree

This chain’s concept is pretty simple: offer a variety of merchandise at the fixed price of $1. That merchandise includes food, health-and-beauty products and household items like paper, plastics and household chemicals.

Seasonal items such as Halloween and Christmas decorations also are featured in Dollar Tree’s (NASDAQ:DLTR) eclectic mix of $1 items.

As of last year, the company operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. Dollar Tree’s reach, along with its proven ability to deliver big revenue and profits, make it the quintessential pauper retailer.

Ross Stores

The “dress for less” retailer offers good-quality merchandise at a very attractive prices. Ross Stores (NASDAQ:ROST) keeps delivering better-than-expected same-store sales, and it recently revised its earnings forecast higher.

The discount retailer also boosted its dividend by 27% in anticipation of continued strong growth in the year to come. Even a pauper can look fashionable after a visit to Ross Stores. And that makes this company a perfect selection for your portfolio.

McDonald’s

The biggest fast-food restaurant in the world has been delivering tasty dishes to cost-conscious eaters for decades, and it’s been doing so at a price just about anyone can afford.

In fact, even paupers in emerging-market countries are capable of buying a Big Mac, and it’s this international growth that’s going to continue driving Mickey D’s earnings higher for decades to come. Consider McDonald’s (NYSE:MCD) the ultimate pauper restaurant.

Now let’s move on to the prince stocks.

Coach

This maker of leather handbags, accessories and related high-fashion items is a must-have for any well-heeled buyer. This can be seen by going to any Coach (NYSE:COH) store and waiting in a line that often wraps around the building.

Coach products are highly regarded in the emerging markets of Asia, and particularly in China, where the number of newly minted millionaires is astounding. Many of these nouveau riche Chinese are spending big bucks on Coach products, but it’s not just Asian consumers who love Coach.

The brand has grabbed fashion-conscious luxury-goods shoppers around the globe.

Tiffany

The iconic jewelry retailer has always been a luxury brand, and as that demographic grows, so will the growth of Tiffany’s (NYSE:TIF) bottom line.

Recently, Tiffany has been cautious about its full-year forecast after moderate holiday sales. Still, as the trend toward greater wealth concentrated in the 1% continues, we are likely to see sales at Tiffany remain robust.

When you really want to go pimp, you buy Tiffany jewelry, and that’s a trend any good investor should decorate themselves with.

Whole Foods Market

If you want to spend big bucks on organic fruits and vegetables, grass-fed beef, and free-trade coffee,  grocery chain Whole Foods Market (NASDAQ:WFM) is the place to be. Apparently, there are plenty of shoppers willing to shell out big bucks for high-end produce and meat, which is is how Whole Foods continues growing its revenue and earnings at an impressive clip.

Recently, Whole Foods has taken steps to shed its image as an upscale shopping establishment that eats your “whole paycheck.” The company wants to change what it calls its “price perception,” but I don’t think price has been too much of an obstacle for the company thus far.

Unless there’s a drastic discounting of its high-end groceries, Whole Foods will still be the luxury shopper’s place to buy food — and it will definitely be a place for investors to shop for stock gains.

This story was originally posted in Traders Reserve.