Compared to the USD, Auto company stocks are on a summer vacation
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Summer is here, and it’s time for a vacation. But this year, flight schedules are anything but reliable, and that new car for the road trip is probably not available at the local Toyota, Honda, Tesla, General Motors, Ford, etc dealership. Due to chip shortages and other issues, most car dealerships have little to no inventory to sell.
High inflation and rising interest rates combined with high gasoline prices are causing people to rethink or pay more attention to their monthly budget expenditures.
Furthermore, if you do decide to buy a used car, be prepared to pay top dollar. In some cases, a 3-year-old model may cost you as much as a new one. Historically autos almost always depreciate, but we are in an unusual market phenomenon where many used cars have appreciated significantly.
What about the auto company stocks themselves? Cash is looking great versus owning one of these auto brands.
Before we motor into the auto company stocks, let’s take a quick look at cash (the U.S. Dollar).
U.S. DOLLAR +18.81%
US DOLLAR INDEX • DXY • CAPITALCOM • WEEKLY
TOYOTA MOTOR CORPORATION • TM • NYSE • WEEKLY
HONDA MOTOR COMPANY, LTD. • HMC • NYSE • WEEKLY
TESLA, INC. • TSLA • NASDAQ • WEEKLY
GENERAL MOTORS -50.18%
GENERAL MOTORS COMPANY • GM • NYSE • WEEKLY
FORD MOTOR COMPANY • F • NYSE • WEEKLY