Hilarious used car prices are rising faster than Bitcoin, Jim Bianco warns
Your car may be worth more than what is in your portfolio.
According to market researcher Jim Bianco, used car prices are rising faster than Bitcoin and other assets.
“If you want to know the best investment you probably had in 2021, it’s that car sitting on your driveway or its garage,” Bianco Research President said on CNBC.Trading country“Thursday.” Thanks for it faster than the stock market and faster than some cryptocurrencies these days. “
He builds an analysis based on the Manheim Index for used car prices designed to track market price movements.
“Prices have risen by more than 20% in the last four months, which is not only higher than S & P, but also higher than Bitcoin itself in the last four months,” he said. “As of December 15, the latest dataset we have obtained, they are now accelerating. At least at this point there is no peak.”
Bitcoin Based on Thursday’s closing price on the stock market, it has risen about 5% in the last four months. The S & P 500 This year has increased by 26% so far.
Bianco cites two bullish drivers in the used car market. The first is people whose new car prices are falling due to a shortage of semiconductors.
The Kelley Blue Book reports that car prices are at record highs. The average price of new cars in November was $ 46,320 and the average price of used cars was $ 27,569, up 27% from the same period last year.
Second: A speculator who wants to turn the vehicle over.
“What we see in used cars is a rush for people to buy them, and a rush for people to guess about them,” he said. “It will only be more expensive, so buy it now.”
“Signs of the bubble”
It’s obviously not your parents’ car market.
“It has all the obvious signs of a bubble,” he said. “The price of a used car should be a depreciable asset. It shouldn’t go up, but this year it’s up 49%, which we call 50%.”
Bianco suggests that the car price sticker shock reflects a bigger problem.
“This is exactly what they are doing [Federal Reserve] I don’t want this to happen because it’s a self-reinforcing idea about inflation. “
“Trading Nation” in December last year, ”Bianco warned that 2021 may mark the first revival of inflation in the generation.
He believes inflation will decline in 2022, but the decline will be much slower than most people think. When it comes to peak car prices, Bianco suggests that it’s everyone’s guess.
“This could last another year. It could last another two weeks,” Bianco said. “The activity you are looking at is probably hilarious.”
https://ift.tt/3eqc0aJ Hilarious used car prices are rising faster than Bitcoin, Jim Bianco warns
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