Auto ETFs Zooming Ahead
Earnings season is once again providing updates on the fiscal health of major sectors of the U.S. economy. While the focus lately has been on the tech sector and Apple's (AAPL) seemingly unstoppable climb higher, other less-sexy corners of the market are posting encouraging results as well. One such area is the automotive sector, left for dead just a few short years ago and now storming back to reclaim much of the ground lost during the recent recession. I've expressed my bullish outlook on the global automotive industry a few times over the past several months, and some recent data releases and other developments serve as a validation of that investment thesis.
There are a number of reasons to be optimistic about the future of the automotive industry. Major manufacturers such as GM (GM) and Ford (F) came out of the recent recession with much leaner operations; combined with a resurgence in demand, these streamlined operations are leading to record profits and swelling margins. Ford's debt was recently upgraded to investment grade by Fitch, a sign that major ratings agencies are beginning to acknowledge the turnaround in the fortunes of automotive stocks. Automotive dealer group AutoNation (AN) recently reported a jump in net income driven by stronger demand for cars and trucks, further evidence that Americans are feeling confident enough to start shopping for new cars once again....423 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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