Everyone likes to treat himself or herself to a little bit of luxury every now and then, and for investors that have invested in luxury stocks over the past year, the gains have been impressive.
With the global economy continuing to gradually improve, luxury stocks have been strong performers. The great thing about luxury stocks is that they are not as susceptible to economic weakness, but they do tend to outperform when the economy is firing on all cylinders. The first five months of the year luxury stocks posted strong gains, but like the overall market, saw some profit taking during the month of June.
It is easy to understand why there has been strength. The housing market is improving and unemployment has been trending lower, so there is more disposable income and consumer confidence has been rising. This has led to strong numbers from luxury stocks, but with the recent turmoil in the market, a lot of investors are starting to question whether or not its time to lock in profits and move on to something else.
We are going to take a look at a couple of the bigger luxury stocks and see how they have been holding up, as well as answering whether or not they are still good buying opportunities.