opinion

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

Kitco Media
By Chris Vermeulen
Published:
Updated:
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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

Kitco Media

Chris Vermeulen

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and author of the book: 7 Steps to Win With Logic

Through years of research, trading and helping individual traders around the world. He learned that many traders have great trading ideas, but they lack one thing, they struggle to execute trades in a systematic way for consistent results. Chris helps educate traders with a three-hour video course that can change your trading results for the better.

His mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.

He has also been on the cover of AmalgaTrader Magazine, and featured in Futures Magazine, Gold-Eagle, Safe Haven,The Street, Kitco, Financial Sense, Dick Davis Investment Digest and dozens of other financial websites.

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