TYR & LVMH question
TYR and LVMH - will they be good for the reflation trade?
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Answer
Both of these stocks are more aligned with a pick up in economic activity and consumer spending while this is clearly linked to reflation per se I would rather play the thematic directly via the Australian Resources Sector.
TYR appears to have put its connectivity issues behind it but as we are seeing with big brothers Afterpay (APT) and Zip (Z1P) profit taking is entering stocks associated with the BNPL sector.
Overall we see less risk with TYR but it’s not a stock we would be chasing aggressively above $3 although we are happy to hold our position in our Emerging Companies Portfolio with an eventual target ~$4.50.
LVMH has performed admirably in a tough economic environment outstripping our upside targets. From a risk / reward perspective we now like this high end retailer 4-5% lower, however would not chase here.
