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Strategies & Market Trends : Value Investing

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To: Jurgis Bekepuris who wrote (31316)6/28/2008 9:33:59 PM
From: Grommit  Read Replies (2) of 78688
 
"Auto Dealerships... So I would be skeptical assuming similar relative industry performance here now.

i agree with the skepticism. and i hope i am not too pessimistic, but the future may not be at all like the past. this especially applies to energy and transportation. the airlines are obvious. as another example -- the auto bubble:

a clipping (link below):

The report by CIBC World Markets also predicts there will be 10 million fewer cars on the road in the United States by 2012.
“Over the next four years, we are likely to witness the greatest mass exodus of vehicles off America's highways in history,” Jeffrey Rubin, the lead author, wrote in Thursday's report...Overall vehicle sales will drop from 14 million to 11 million by 2012 – the lowest level since the early 1980s.

............
i would bet that the displacements are going to be very significant in certain industries -- very non linear.

and the study is just trying to take into account gas costs -- what about cost inflation in steel, energy, and transportation? and then the auto industry tries to spread the fixed costs over lower volumes...

theglobeandmail.com

yubanet.com
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