Auto Sales

David Stockman On The Anything President And The Everything Bubble

"The remaining bullishness and buy-the-dips robo-trading that temporarily sustained the dotcom bubble through March 2000 and the housing bubble through September 2008 will soon give way...  This century’s third great bubble’s days are numbered and in just a few digits."

Jim Quinn Asks "Will Trump Accept Responsibility When This Shitshow Implodes?"

Donald J. Trump has taken credit for making America’s economy great again. He’s been crowing about all the jobs being created, the soaring consumer confidence and record highs in the stock market. It’s all because the Donald has inspired Americans about our glorious future.

But, a funny thing has been happening in the real world. The economy has gone into the shitter and GDP will be lucky to reach 1% in the first quarter of his presidency.

Millennials: A Menacing Metamorphosis To The Status Quo

For the next 8 years one should sit down, strap in, and hold-on. The generational rollercoaster will involve chills and thrills, but it’s completely normal. All we say is just be on the right side of history.

What's Left To Drive The Recovery? Not Much

"These are some serious headwinds, and it’s not clear what offsets them. Could be that the only source of future growth is the government, which means the Fed will soon have to reverse course, cutting interest rates and buying up even more of what used to be known as the free market."

What Makes Millennials Disturbingly Different?

In stealth fashion millennials are rapidly transforming society...The era of the US economy sustaining itself via consumption may die as the Millennials become the economy! Their motivations and expectations are completely different than any prior generation and the changes will be profound.

US Stock Funds Suffer Biggest Outflow Since 2015 As Bond Inflows Soar

According to Bank of America in the latest week through April 5, there were $7.4BN in outflows from equities, the largest in 40 weeks. At the same time, bonds recorded $12.4 BN of inflows, the highest in 8 weeks, with Treasuries posting largest inflows in 10 weeks as the "great reflationary rotation" crumbled once again. The focus was entirely on the U.S., where stocks saw the largest outflow since 2015, or in the past 82 weeks, as $14.5 billion was redeemed.

Frontrunning: April 4

  • Europe stocks rise but bond yield falls show investor caution (Reuters)
  • Danger of Sell-Off in U.S. Stocks Grows as Auto Sales Disappoint (BBG)
  • Battle Over Gorsuch Confirmation Is Set to Hit Senate Floor (WSJ)
  • U.S. business seeks action, not trade war, in Xi-Trump summit (Reuters)
  • Uncovering the Secret History of Wall Street’s Largest Oil Trade (BBG)

Futures Slide As Weak Start To Q2 Continues Amid Global Growth, Political Jitters

Global stocks were pressured by a poor start to the second quarter in the US, where carmakers reported disappointing sales data, slamming auto stocks around the globe. The selling has persisted for a second day, with Asian stocks, S&P futures fall and European shares all partially in the red today after their biggest decline in two weeks.

The Auto Industry Is About To Drive Off A Cliff, Again

We knew cheap money would be too much for auto executives to refuse and oversupply was a sure bet! So will be the industry's return to the Washington "substance abuse center".  Expect the industry to be back at the government feeding trough asking for help.