A choppy yet positive week

Category:

Last week was not particularly eventful neither for equities as whole nor for luxury stocks specifically. The only remarkable piece of news recorded was once again to be found within the US market where the S&P 500 managed to close for the first time above the 3000 threshold.

Overall US stocks closed slightly positive while on the other hand their European counterparts declined slightly for the week. Overall performances were fairly muted among luxury stocks, as you can see the YTD hierarchy in our basket stayed all but unchanged. Obviously no trend keep going indefinitely without weeks marked by profit taking and higher volatility, all in all though once again luxury stocks scored better performances than the general market. Many, although not all, of the weaker names were once again beneficiaries of a positive rotation.

The current phase is indeed one marked by a decreasing dispersion of returns, a process helped also by valuations that are not exactly compelling. It is nonetheless quite encouraging investors feel ebullient enough to venture into what was until not long go uncharted territory. When it comes to what we call the core of our portfolio, a cluster of names where some of the largest and most exclusive luxury companies can be found, the ongoing developments could be correctly classified as a transitional time. Or in sell-side financial institutions lingo such luxury companies are now a hold.

By that we mean it is probably still too early to liquidate positions as they’re not overtly in bubble territory, at the same time it is quite likely preferable not to initiate new ones in this niche. We are also going through a phase of low volatility, that would offer the chance to partially hedge our portfolio by acquiring additional exposure to financial products that are long vol.

Azienda Performance YTDBorsa 
Ferrari70.55%Milanoup
LVMH 48.72%Parigidown
Estee Lauder 43.59%New Yorkup
Christian Dior42.26%Parigiup
Hermes 33.15%Parigiup
Moncler 33.01%Milanodown
Richemont 31.24%Zurigodown
Kering26.87%Parigiup
Ferragamo18.97%Milanoup
Tifffany17.56%New Yorkup
Porsche 17.23%Francoforteup
Burberry15.53%Londraup
Ralph Lauren8.70%New Yorkup
Brunello Cucinelli5.75%Milanoup
Tod's1.41%Milano down
Prada-2.33%Hong Kongdown
BMW-6.80%Francofortedown
Capri/Michael Kors-3.82%New Yorkup
Tapestry/Coach-10.10%New Yorkup
Tesla -26.36%New Yorkup

sponsored
sponsored

Related Posts

The fourth edition of Wopart – Work on Paper Fair will run in Lugano from September 19 to 22

The fourth edition of Wopart - Work on Paper Fair, the international art fair of works on paper founded by Paolo Manazza, will run from September 19 to 22, 2019 at the Lugano Exhibition Center

Jeremy Scott keeps things big for Moschino, for winter 2019/20

To evoke excessive consumerism, he reconstructs a realistic teleshopping décor. And with humour and fantasy, he creates a wardrobe embroidered with drinks cans, dollar motifs and slot machines, and fun accessories in the form of a washing machine or a tube of toothpaste

Liu Bolin at MUDEC museum in Milan

Starting from May 15, camouflage photographs by Chinese artist Liu Bolin have been on display at the MUDEC museum in Milan for the exhibition "Visibile Invisibile" (“Invisible visible”).