We are still at the near beginning of an....AUTO BUBBLE
Thanks mostly to FORD for FORD's success.... Guess what I just read today?
Ford Motor Company adds 13 companys to its list of Key Suppliers.
hmm...When your cars are built with more technology than ever before and production + sales are up then likewise....you'll need more suppliers and technological expertise to support all of that.
This ladies and gentleman... is why I have to point out that perhaps the best performing sector since the market bottomed in march is the automotive sector!
You have GOODYEAR that skyrocketed in 2009....
You have Auto Parts Suppliers like AMERICAN AXLE that took off like a rocket.
FORD was THE best performing large cap in 2009.....
Harley Davidson is skyrocketing
TATA MOTORS ? Up Up and Awaaaaaaaaay!!!!
The list goes on.... Sure many other sectors have seen stocks go up big like the Financials, Restaurants, Consumer Staples, and so on.... Appliances? Whirlpool anyone???
But folks..... I dare you to find a sector outperforming the AUTOMOTIVE SECTOR....
And it all boils down to this.... Are we in a BUBBLE??? an AUTO-BUBBLE? Cause the day FORD reports a Quarterly Loss could very well be a Scary Frightening Day for the Stock Market.
BEARS looking for something to trigger a massive market correction to the downside need only look at the Automotive Sector.... The Auto-Bubble.....If people aren't buying cars....There's a reason for that.
GREAT DEPRESSION???? What was the first sector to take a big hit in 1930s??? CARS!!!
CARS stop selling.....fuel demand declines big.....homes stop selling next....and then you have consumer staples, financials, consumer cyclicals and so on falling off a cliff.... It all starts and ends with the CARS!! <----
So....want to predict the next 2007 beginning of a market correction / nasty recession???
Just ask yourself....hmm....How's FORD doing?