Declining Auto Sales: Details From The Front Lines
The following is an excerpt of an email I received from a long-time client and very successful high end auto salesman in the Chicago area.
In the years I have known him he has always been positive and forward looking.
While I turned bearish on the auto sector some time back with shorts in GM and SC, i have to tell you, this email was pretty alarming.
This auto sales decline is putting a lot of pressure on me lately. 14-years selling cars in high-end luxury space and I have never seen auto sales decline this much. This is worst then the recession we had before. Aggressive rebates and low financing still not turning the wheel around.
The trend was strong for few years when banks pumped way too much money in the market, pulling sales forward. Now they are sitting flat as buyers disappear all of sudden. No clue what the fuck is going on.
All I can hope is to turn this game around. There are so many changes in at our store lately so my focus is to do the right things and stay away from all the noise.
My comment: thank you to the moronic tenured professors at The Fed who have played a big role in these massive dislocations of capital for years now. We are seeing the early signs of how disastrous these policies have been.
If things are so good why on Earth do we have an inverted yield curve and bank stocks lagging the market?
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