Quote:
Originally Posted by chassis
Inventory can be held in cornfields, yes cornfields. And airport tarmacs, and many other places. It happens. Auction yards are one place to investigate, if one has time on one's hands.
The US Fed just released latest motor vehicle data. The market is strong.
- sales of vehicles are increasing
- inventory:sales ratio is in check
- production of new vehicles is increasing
Furthermore, today's employment report was net positive, bullish for continued vehicle price support. All of the above comments on the Fed are data that can be verified.
Anecdotally in my area, homes are flying on and off the market, and it's not unusual to see 5-10 vehicles per day in a very small geographic area (my daily errands route) with temporary registrations, meaning there has been a recent financial transaction. Interest rates are low, an important factor in vehicle affordability. My local BMW and M-B dealers are smiling like Cheshire cats, as they normally do, because of the good market.
Overall I am bullish. Will there be bumps in the road? Likely. But the direction is higher in my view.
If anyone chooses to take the "prices/economy/stock market will crash" perspective, please support it with data and widely accepted economic concepts.
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Sales of vehicles in increasing - better than it was doesn't mean back to normal
Inventory: sales ratio in check - virtually all production stopped for some amount of time
Production of new vehicles is increasing - virtually all production stopped for some amount of time
Where did you see that the market is strong?