Richemont — one of the most popular rand hedge stocks on the JSE — might, at first glance, appear to be a luxury local investors can no longer afford.

The share is up a glossy 20% over three months, and has registered a more than 30% gain over six months. On a trailing earnings multiple of 35 times and a forward multiple of 31 times, Richemont — which owns brands including Cartier, Van Cleef & Arpels, Baume & Mercier, Panerai, Montblanc and Vacheron Constantin — looks incredibly rich against a JSE where single-digit multiples are now commonplace (especially among SA Inc stocks).

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