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) or General Motors (GM).
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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