JP Morgan strategists say consumer confidence and corporate profit growth appear to have bottomed, creating scope for a turnaround in European luxury stocks. Historically, following a trough in the University of Michigan consumer sentiment index, the European luxury sector has outperformed the broader market by about 9-12% over the subsequent 12 months. Despite ongoing earnings warnings and cautious guidance across consumer cyclicals, JP Morgan is currently overweight the luxury sector globally,

JP Morgan strategists say consumer confidence and corporate profit growth appear to have bottomed, creating scope for a turnaround in European luxury stocks. Historically, following a trough in the University of Michigan consumer sentiment index, the European luxury sector has outperformed the broader market by about 9-12% over the subsequent 12 months. Despite ongoing earnings warnings and cautious guidance across consumer cyclicals, JP Morgan is currently overweight the luxury sector globally, citing a potential wealth-effect recovery.