January Outlook

“US Automakers Ford & GM seem to be receiving a lot of negative attention from investors recently. This pales in comparison, however, to many of the fundamental changes that these two companies, Ford especially, have been undergoing and plan on bringing about in the coming years. Ford, for example, has partnered with Google in the application of a new “Smart Car”. It also wants to get directly involved in the “Car Sharing” programs that have been garnering nationwide (and worldwide) support lately. They want to have lots in larger cities–filled with Ford cars of course–that customers are able to utilize their credit cards to rent cars for however long a time period they choose.

On top of these fundamental shifts in US Automakers’ business models, their stocks have been relatively stagnant for quite some time and have in fact taken dips in 2015-6. They are now yielding twice the dividends of their average S&P 500 counterpart.

Ford sales are up. GM sales are up. Fiat Chrysler has actually had its best year in 90 years! The companies creating the consumer product that has so eloquently epitomized the American way of life, we feel, is a great analogy to the overall domestic stock market: at current prices, it’s trading at a bargain.

Like always, feel free to contact us to learn more about our viewpoints about the markets and how we can help you attain (or retain) your retirement through their use.