Over the past year, many sectors collapsed as inflation, rising interest rates, and other macro headwinds drove investors from higher-growth stocks toward more recession-resistant plays. One safe haven has been the luxury goods sector, since affluent consumers are generally better insulated from economic downturns than their lower-income and middle-class counterparts.
LVMH (OTC: LVMUY) and Richemont (OTC: CFRH.F) are two of the bellwethers of that resilient industry. LVMH's European shares have declined just 3% this year, while Richemont's shares have pulled back by about 16%. Both stocks easily outpaced the bear market declines across the major indexes. Should investors buy either of these luxury stocks today?
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Source Fool.com