‘Unstoppable’ luxury stocks remind some investors of US tech

Pasha De Cartier has been a cult design since its creation in 1985.

The combination of robust Chinese spending growth and a strong start to the earnings season is seen supporting stocks such as LVMH, Hermes International and Kering SA, all of which reached record highs in the past two months.

The quality of the businesses and their substantial position in the stock market are causing some investors to compare the companies to U.S. technology behemoths.

"We view European luxury companies as the European stock market equivalent of U.S. tech: businesses that are unrivaled in their global dominance, ” said Giles Rothbarth, manager of the Blackrock European Dynamic Fund. Some companies in the sector with the best prospects are still attractive even after recent share price performance, he said.