China stimulus has been announced, not the biggest bumper package but one that can bring some relief to the beaten up luxury sector that is dependent on the Chinese consumer.
No better place to look than LVMH. Whilst the their products never go on sale, their stock price is down over 30%. This is the most valuable European company, alongside the likes of Novo Nordisk and ASML.
I had traded this short (see my previous analysis) to great success and closed my position yesterday in anticipation of the stimulus after rumors were circulating about the possibility.
I think now is also a good time to consider longs for a relief rally. Only time will tell if it’s sustainable but I believe as a longer term investor this company will perform well in the long mid to long term and it’s one you can confidently DCA down in the event of a black swan crash.
Do your own research, not financial advice.