Zacks Market Edge

Is Everyone Wrong About Peak Auto? - Zacks Market Edge Podcast 21


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In this episode, Tracey is joined by David Bartosiak, Zacks Equity Strategist and Editor of the Momentum Trader and Home Run Investor services. They discuss one of David’s favorite topics: cars.
Cars are second only to sneakers in David’s list of obsessions.
You can listen to the podcast with David and Tracey discussing the magic of sneakers, and what stocks to buy to cash in on the hot athletic shoe phenomena,
2015 was a record year for car sales in America, with 17.5 million cars sold. Most analysts believed in the thesis of “peak auto” which meant that financing wasn’t going to stay low forever, the number of consumers who needed a new car would shrink, and that the record high was the best it was ever going to get.
In other words, it’s all downhill from here for the auto industry.
Or was it?
2016 has started out hot, as SUV and truck sales have soared to new highs. February was the best month for American auto sales since February 2000.
Tracey and David debate the “peak auto” bullish and bearish arguments.
They also discuss how investors can get a piece of the action if this isn’t the bottom. David urges investors to think outside the box and consider non-traditional plays on the auto industry like Nvidia (NVDA), along with the car makers themselves such as General Motors (GM), Ford, and Tesla (TSLA).
Tracey likes the auto retailers, specifically Lithia (LAD) as well as some of the parts makers like Lear Corporation (LEA).
Should you be bullish on the auto industry? Listen to this week’s podcast to find out.
Nvidia: http://www.zacks.com/stock/quote/NVDA?cid=cs-soundcloud-ft-pod
General Motors: http://www.zacks.com/stock/quote/GM?cid=cs-soundcloud-ft-pod
Tesla: http://www.zacks.com/stock/quote/TSLA?cid=cs-soundcloud-ft-pod
Lithia Motors: http://www.zacks.com/stock/quote/LAD?cid=cs-soundcloud-ft-pod
Lear Corporation: http://www.zacks.com/stock/quote/LEA?cid=cs-soundcloud-ft-pod
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