Car Sales SkyRocket…Expect Unemployment Numbers to be Great

Car Sales SkyRocket…Expect Unemployment Numbers to be Great

Car Sales SkyRocket...Expect Unemployment Numbers to be Great

“Davidson” Submits:

February 2012 light vehicle sales were released today. The final tally was a Seasonally Adjusted Annual Rate (SAAR) of 15.1mil rate. Historically this is the rate for a normal economy since the emid-1980s. Employment is rising sharply which is the source of light vehicle Supply/Demand. Yet, with good news literally pouring forth from multiple economic measures since early 2009, the majority opinion seems to believe that the economy is ready to slip again into recession or at best is sputtering along. If this is sputtering along and the $SPY is priced over 1300, then where will it be priced when housing has fully recovered and vehicle sales are above 16mil SAAR?

This Hedge Fund Believes The New Real Estate Cycle Is “Well Underway”

REITChilton Capital's REIT Composite was up 6.1% last month, compared to the MSCI U.S. REIT Index, which gained 4.4%. Year to date, Chilton is up 6.3% net and 6.5% gross, compared to the index's 8.8% return. The firm met virtually with almost 40 real estate investment trusts last month and released the highlights of those Read More

History indicates that the market should be much higher. Be patient! Psychology is turning and should turn much more positive as housing blooms.

Ben Graham once said, “The investor’s chief problem — and even his worst enemy — is likely to be himself.” The majority of investors always seem to sell at the lows and buy at the highs. The majority of investors turn pessimistic when the media is pessimistic and only become optimistic when the media turns optimistic.

Value investors are optimistic when all about them are bemoaning the future. I cannot be more positive than I am today.

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Todd Sullivan is a Massachusetts-based value investor and a General Partner in Rand Strategic Partners. He looks for investments he believes are selling for a discount to their intrinsic value given their current situation and future prospects. He holds them until that value is realized or the fundamentals change in a way that no longer support his thesis. His blog features his various ideas and commentary and he updates readers on their progress in a timely fashion. His commentary has been seen in the online versions of the Wall St. Journal, New York Times, CNN Money, Business Week, Crain’s NY, Kiplingers and other publications. He has also appeared on Fox Business News & Fox News and is a contributor. His commentary on Starbucks during 2008 was recently quoted by its Founder Howard Schultz in his recent book “Onward”. In 2011 he was asked to present an investment idea at Bill Ackman’s “Harbor Investment Conference”.

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