RE: Luxury and Fashion space is HOT, also check MUL7 May 2021 14:24
FOMO VERSUS 'AS GOOD AS IT GETS' TUG OF WAR (1201 GMT)
Looking at how stocks have performed lately (see blog post
below), it seems that the earnings season has backed the current
record highs but has not provided fuel to go much beyond that.
For many investors, that means the main takeaway is that
this is actually as good as it gets, at least in the short-term.
Against this backdrop, UniCredit strategists believe that
"the tug-of-war between a fear of missing out and profit taking
seems set to continue" and that "trading within a broad sideways
range is highly likely in the coming months".
Longer term though, the team believes the recovery will
continue gaining strength and that therefore, "any near-term
setback will be a buying opportunity".
Among interesting targets, they see stocks that have
announced buybacks as possible opportunities as the Solactive EU
buyback index shows an outperformance over the STOXX 600
benchmark since last October: