British shares Burberry Group (LSE: BRBY) is by far the worst performer in my entire portfolio of 25 stocks.

I didn’t buy the luxury goods brand until May 15, about four months after the January profit warning, but what I hoped was a bargain turned out to be a bomb. Since then, I’ve dropped twice, but by Tuesday I was still down 44%.

As if that wasn’t enough, the gains in excess of 6% that I was hoping to receive as compensation for my troubles will not be realized. On July 15, the board suspended dividend payments and fired CEO Jonathan Akeroyd.

This FTSE share has lost its nippy

I think it could be worse. Measured over a 12-month period, Burberry shares have fallen a brutal 65%, the worst performance on the market FTSE100 at this time. Except it’s not on the FTSE 100 anymore, but FTSE250. This fall from grace seems a bit over the top, but there you go.

Burberry stock blew up in my face, but what is it? Suddenly they exploded and came back to life.

Yesterday they jumped by 8.71%. This morning they are up another 6.18% and are still rising. That means 14.89% in just two days. However, I still find that the total loss is over 30%, but this is just the beginning. Is there anything else ahead?

When it comes to dividends, the answer is no. Some stock websites still show Burberry with a trailing yield of 8.96%, but that’s a dream. I’m afraid we won’t get it.

What about height? It depends.

Burberry’s rebirth is not the result of the efforts of novel CEO Joshua Schulman, formerly of Michael Kors and Coach. It all depends on the actions of China’s most essential leader, Xi Jinping, in pumping much-needed stimulus into the country’s struggling economy.

Burberry may flourish, but I’m cautious

China is a huge source of demand for Western luxury goods, and the consumer slowdown in the country has been a real blow to Burberry. The United States is another huge market and there is good news here too: the Fed has lowered interest rates and fears of a demanding economic landing are fading.

Over the last few days, I’ve noticed that the worst-performing companies in my portfolio are doing it best – I’m looking at you Diageo, GlencoreAND Ocado Group. Investors are choosing risk again and looking for opportunities.

The obvious risk is that the global economic recovery deteriorates. There is also a major problem with the company itself, as it has lost control of its brand and needs to regain it.

The 18 analysts tracking Burberry are gloomy, setting an average one-year price target of 673p, down another 5.09% from today’s 705p. However, there is a huge discrepancy – pessimists predict shares will fall to 410p, while optimists expect 800p.

The management promised a better second half and I am more positive. So is Burberry in deep bargain territory? It appears to be trading at 8.96 times earnings.

So should I buy more? I caution you against chasing this two-day rally. The situation could easily turn around and I would then suffer another short-term loss. But when things tranquil down, I’ll get into it.