The worst of the drubbing in German automobile production is likely behind us, as new orders have recently gone vertical. Backlogs are also sky-high and suggest that a definitive turn looms in German motor vehicle output. The…
Neutral We have successfully ridden down the S&P 1500 components index on a structural basis over the past four years. But now, factors are falling into place for an end to this multi-year bloodbath. On Monday, we lifted…
Highlights Portfolio Strategy While equities will likely be higher in the coming 9-12 months, we would refrain from committing fresh capital to the market at this juncture. A better entry point lies ahead. Tactically, this market…
Both autos and automotive components stocks have been underperforming, the former since 2013 and the latter quite dramatically since the beginning of 2018 (top panel). This in spite of light vehicle sales stuck at persistently elevated…
Underweight (Upgrade Alert) Auto components stocks found a rare bit of relief this week on the back of news of a trade deal with Mexico and hopes that a similar deal can be made with Canada. Importantly, the scant details…
Underweight As with other metals-consuming industries, stocks in both the S&P auto components and S&P autos indexes have traded sharply lower following the announcement of the proposed steel and aluminum tariffs (top panel).…
Underweight Presenters at this week's Detroit Auto Show have reason to celebrate; December light vehicle sales numbers showed the industry had sold more than 17 million vehicles for a third consecutive year, marking the best…
Automotive components companies (as well as auto manufacturers) just finished their best month of the year in September (top panel), lifted by expectations of a spike in sales to replace the estimated 700,000 light vehicles destroyed by…