This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BWA $60.79 0.00%
F $15.77 0.00%
GM $35.59 0.00%
JCI $52.48 0.00%
TM $141.21 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs