After two years of enforced austerity the wealthy appear to be getting bored of their wardrobes. In the latest - and perhaps most visible - signs of a recovery, the well-heeled have put frugality behind them, splashing out on top brands that have helped the luxury industry outperform the MSCI World Index.
In the first quarter the Julius Baer luxury fund, run buy Dr Scilla Huang Sun, posted returns of 14% compared with the MSCI World which returned 9% in euro terms, buoyed by brands such as Hermes , Burberry and Balenciaga. Of course, rising equity markets are boosting confidence sufficiently to spark the purchasing in the first place.