INTERESTING LUXURY GOODS STOCK TITLES

Swiss investment bank UBS is urging investors to snap up shares in luxury goods companies Hermes, Richemont - owner of Cartier - and Hugo Boss as 2024 approaches. Despite a generally cautious tone when it comes to the sector, UBS maintains a bullish view on the three stocks, confident in the growing attractiveness of their valuations. The bank's analysts believe these companies will have minimal downside potential in the event of an economic recession.

Earlier this year, the S&P Global Luxury Index was up 25% before suffering a decline of more than 12% in the past six months on recession fears. The index, which is available to investors through the Amundi and Roundhill exchange-traded funds, is an important benchmark for investors interested in the luxury goods market.

"In the context of a complex sector, we prefer the most defensive names such as RMS (Buy), which we believe would have the lowest downside risk to estimates in the event of a potential recession, supporting its premium valuation," UBS analysts led by Zuzanna Pusz noted in a Nov. 21 note to clients.