Disappointing Auto Sales Increase Danger of Stock Plunge

Recent history suggests American automobile sales indicate subsequent moves in U.S. equities.

Declines in 2011 and 2012 were followed by a retreat in the S&P 500 index, and gains in the fall of 2015 came before a market rally.

While the relationship isn’t exact, and correlation doesn’t equal causation, the surprising slump in vehicle sales last month comes just as investors are questioning how much to believe off-the-charts surveys of American confidence levels.

The retreat in the auto sector reported Monday mirrors lackluster broader consumer spending data released Friday. Both readings fly in the face of the two most-followed gauges of consumer sentiment, now at 17- and 11-year highs. It also contrasts with an index of optimism among small businesses — local car dealers among them — holding near levels unseen since the mid-2000s.

There’s more hard data coming this week to put the soft data to the test —



Leave a Reply

Recent Posts

Trump Supporters: Get Your 2020 'Keep America Great' Shirts Now!

Are you a proud supporter of President Donald Trump?

If so, you’ll want to grab your 2020 re-election shirt now and be the first on your block to show your support for Trump 2020!

These shirts are going fast so click here to check for availability in your area!


More Popular Stuff for Trump Supporters!

MUST SEE: Full Color Trump Presidential Coin (limited!)

Hilarious Pro Trump 'You are Fake News' Tee Shirt!

[Exclusive] Get Your HUGE Trump 2020 Yard or House Flag!