From the desk of Steve Strazza @sstrazza
I’ve personally been in the market for a new or used car for a few months now, and let’s just say it hasn’t been easy. The entire supply chain has been disrupted, and the market has been unable to keep up with demand.
I finally made the decision to stop my search until the supply crunch for semiconductors and other critical inputs alleviates. I could be waiting a while though, as this has already been going on for about a year. Thankfully, I live on an island that is only 8 square miles, so my bike or feet can take me wherever I need to go in the meantime.
According to a recent article from the Wall Street Journal:
Prices for both new and used cars are high. The surge is driven in part by the global chip shortage, which is straining new-car inventories. This has led more consumers to shop the preowned market, increasing demand for used cars and eroding dealer inventories.
A little over a month ago we published a post discussing the strength in the Nasdaq Global Auto ETF $CARZ. The index is designed to track the performance of the largest companies in the automobile manufacturing industry. These stocks had been performing quite well as it is a seller’s market out there, but have corrected over the last few months.
We even discussed the relative strength we’re seeing from the new online auto retailer Carvana $CVNA in yesterday’s 2 to 100 Club Report.
But today, we’re going to reveal last week’s Mystery Chart and focus our attention less on the traditional automakers and more on the burgeoning growth industry of autonomous and electric vehicles as this is where the strength has been for the automotive industry of late. Let’s drive right in. Get it…?