shares luxury fashion such as China loses steam

European stocks luxury, once a must-have for managers who are looking to avoid economic stagnation and European gain exposure to surging sales in China in disgrace, was hit by concerns over a slowing growth are. Beat Paris cover against sector funds are graphic and technical further price declines after a successful run of two years and investors to take their attention to areas less rich benefit value, supported by relief fears the debt crisis in the euro zone. Prada Outlet California "The luxury shares lose their status as a safe haven. 'S when people were" overweight "rating on the sector over," said Isabelle Enos, Deputy Director of the Asset Management B * Capital. As a profit warning from Burberry mid-September, which resulted in an area that was used for periodic upgrades profit fell panic, luxury stocks, led by fashion house United Kingdom itself, by 26 percent to almost hollow year two. The damage was widespread, with Louis Vuitton owner LVMH, was Swiss watchmaker Richemont and Gucci owner PPR, a loss of 6 to 10 percent of Burberry warning. Cause for concern "China used to be a pilot, it is now a source of concern," Blue Diamond Fund Manager Christian Jimenez. "Although the portfolio managers cut their exposure to the sector and take profits, hedge funds recognized the trend and go" short "luxury, usually reinforced the trend." Although remain relatively low, interest runs a number of shares of luxury since warning of Burberry rose, watchmakers especially targeted by short sellers - who profit from falling prices by equity loan, sell, and then buy it back at a lower price. According to data provider Markit, Richemont 3.2 percent of the shares outstanding on loan, to 2.6 percent at the end of August and Swatch Group has 7.2 percent of its shares on loan to 4.8 percent at the end of August. Negative sentiment lead to the sector, said Swatch CEO Nick Hayek, last Thursday, the group would fight to achieve the sales target this year. "The area was very pleasant on the market with good results and strong margins, has driven many stocks luxury at record levels this year. But your leaders began to change during the summer," B * Capital Enos said. Reassuring - as I said CEO of Hermes on Sunday that the group's goals for the year is unchanged - are not convincing investors. Hermes stock hit a near 15-month low on Tuesday. Long / short strategies EN VOGUE If a short circuit is too aggressive from the start a business, portfolio manager a "pair trade" market neutral strategy, paris to implement on the difference between the performance of two systems, regardless of overall market direction. "There simply is not a catalyst for recovery. At best, these stocks will move sideways for a while. Investors who is not as bold as hedge funds, the best idea" Euro STOXX "act pairs" long short 50 shares Luxury "," a Paris-based trader said. The trade would have taken eight percent since early September. On the technical side, the graphics have marked the end of an optimistic outlook for the industry. Almost all stocks had a breakaway gap - a gap between the price of a session and the highest price of the next meeting, which shows a sudden change in investor sentiment - the day of warning Burberry. Technical analysis firm Day-By-Day 'negative' short-term ratings on LVMH, PPR, Burberry, Richemont and Swatch, citing recent breaks of less than 50 days and 200 days moving averages, such as strong support levels considered. In spite of the violent train back into stocks since Burberry luxury alert actions in the industry is not enough to attract bargain hunters dropped by, warned a number of dealers. Hermes still trading at 29 times expected 2013 earnings, while LVMH. To 14.7, 13.4 to 12.8 Burberry and Richemont, according to Thomson Reuters I / B / E / S data Overall, the sector trading at a P / E ratio of 15.3, which. Roughly with its five-year average, but still a hefty premium for the market, with the STOXX 600-11.1 Ratios sector were of double-digit growth in emerging markets, but the premium is now in question. "These names were the darlings of the market for a long time, but people now realize that the luxury industry is not immune to the economic reality," said Louis Capital Markets Trader Jerome Troin-Lajous. On Monday showed China's manufacturing Purchasing Guide 'Index (PMI), factory activity contracted for a second month in September, fueling fears the country could for a "hard landing" are set in the growth to rapidly fading. "The issue is it is a soft or a hard landing in China," B * Capital Enos said. "With the sharp inventory correction warning for Burberry, is a slight slowdown in growth in China is underway, and valuations are again more reasonable level. But if there is a hard landing, it will be a different story."