Betting on Strong Auto Sales
I guess you can call it somewhat official: the U.S. auto industry is back and it's growing. According to Edmunds.com, more than 1.2 million new vehicles were sold in February, a 4.3% increase over the same month last year and a whopping 15% increase over January. If t this estimate proves accurate, the seasonally adjusted annual rate of new autos sold would approximate 15.5 million in 2013. Such numbers, even if slightly on the optimistic side, are very strong for the auto industry. It's no coincidence that such strong growth in new auto sales comes alongside what appears to be a rebound in housing demand and prices.
It's not surprising then that shares in General Motors (GM) are trading near a 52-week high, though at $27 a share, I believe there remains quality upside. Even Ford (F), also near a 52-week high, looks attractive with a 3.2% yield for a quality blue-chip company. I believe there are now better ways to invest in strengthening U.S. auto market. Mr. Market, after all, is an anticipatory fellow and the rise in automaker share prices reflects the market's bullishness in future new-car demand....357 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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