Auto Profits Will Soar When Economy Grows Above Trend – Seeking Alpha

We have been beating the drums for the past few months regarding the opportunity to profit from an obvious long-term winning trend, the US auto industry’s comeback (see Even in a Recession, Ford and GM Are Easy Doubles and 5 Stocks to Play the US Auto Rebound#. Now it appears that the sector might finally be getting some traction, as the stock prices are rebounding faster than the general market. In particular, both Ford #F) and General Motors (GM) have seen their shares bounce roughly 20% from their late September levels.

While this move might seem like a deadcat bounce to some, we suggest that investors re-examine the fundamentals and understand why this sector has much room to move higher.

via Auto Profits Will Soar When Economy Grows Above Trend – Seeking Alpha.