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Compared to the USD, Auto company stocks are on a summer vacation

Chris Vermeulen

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

Commentaries & Views

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%

  • U.S. Dollar making a new 14-year high

  • 2020-2022 U.S. Presidential Cycle: USD appreciated +18.74% to date

  • 2016-2020 U.S. Presidential Cycle: USD depreciated – 12.80%

  • 2012-2016 U.S. Presidential Cycle: USD appreciated +37.20%

US DOLLAR INDEX • DXY • CAPITALCOM • WEEKLY

TOYOTA -26.93%

  • January 2022 to present

  • -$56.77 or -26.93%

  • 22 weeks or 154 days down

  • The bear market has more room to drop; if you own it consider selling on rallies and going to cash

TOYOTA MOTOR CORPORATION • TM • NYSE • WEEKLY

HONDA -27.57%

  • August 2021 to present

  • -$9.19 or -27.57%

  • 47 weeks or 329 days down

  • The bear market has more room to drop; if you own it consider selling on rallies and going to cash

HONDA MOTOR COMPANY, LTD. • HMC • NYSE • WEEKLY

TESLA -47.38%

  • November 2021 to present

  • -$582.69 or -47.38%

  • 32 weeks or 224 days down

  • The bear market has more room to drop; if you own it consider selling on rallies and going to cash

TESLA, INC. • TSLA • NASDAQ • WEEKLY


GENERAL MOTORS -50.18%

  • December 2021 to present

  • -$31.91 or -50.18%

  • 27 weeks or 189 days down

  • The bear market has more room to drop; if you own it consider selling on rallies and going to cash

GENERAL MOTORS COMPANY • GM • NYSE • WEEKLY


FORD -55.71%

  • January 2022 to present

  • -$14.11 or -55.71%

  • 22 weeks or 154 days down

  • The bear market has more room to drop; if you own it consider selling on rallies and going to cash

FORD MOTOR COMPANY • F • NYSE • WEEKLY

By Chris Vermeulen

Contributing to kitco.com

Contact chris@thetechnicaltraders.com
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.