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Government Shutdown Benefits Auto Sales

PETOSKEY, MICH. ( TheStreet) -- Could investors be so lucky as to see a 7% to 10% pullback in the auto industry due to the government shutdown?

I don't just mean a broad-based selloff in the market either. That didn't happen. Overall, everything has held up pretty well. Now we're looking for a selloff in a quality sector that was ultimately tied to the government shutdown.

For all intents and purposes, this government shutdown was a one-time event. If U.S. consumers were holding back on purchasing a new car because of the shutdown, it's not as if anything truly bad happened to automakers like Ford (F - Get Report) or General Motors (GM - Get Report).

It's not as if there was a large market shift. Many consumers did not face severe, long-term pressure that forced them to curb spending or delay buying big-ticket items.

The trend has no reverse and shouldn't cause a decline in auto sales.

In a recent study conducted by Kelley Blue Book, 18% of prospective car buyers said they would forgo purchasing a new car until there is a resolution.

The article also suggested that if the government only came to a short-term solution, it could further hurt auto sales as many Americans may simply put off buying a new car for another month or two.

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SYM TRADE IT LAST %CHG
BWA $61.10 -0.73%
F $15.27 -1.55%
GM $35.70 0.34%
JCI $51.23 -0.14%
TM $138.22 -0.87%

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DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

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