Just as home sales and subprime mortgages inflated the real estate bubble in 2006 and 2007, today the U.S. auto industry is watching sales soar on the wings of unqualified buyers. The Fed’s stimulus plan for keeping interest rates artificially low is making it easier for consumers with shoddy credit to buy cars, and for yield-starved investors to purchase bonds with more risk attached to those auto loans. According to Experian Automotive, these types of higher-risk auto loans now make up 27 percent of new car sales, the highest percentage ever since this statistic started being tracked. Don’t we already know how this story ends?
Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
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Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.
Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services: