Do Cars Drive the Market?

You may think me a little strange but I am a car nut. I have owned many of the world’s most extravagant automobiles at one time or another and I enjoy following the market. As I do my research, I sometimes discover some odd things. It seems that the used car market may tell us a lot about the stock market.

Here is the JD Power Used Car Price Index going back 20 plus years. Notice anything? The used car market took a turn to the downside just before the bear market commenced in 2000. Similarly, the index started to plunge in late 2007, not long before the financial crisis began. In late 2016, down she goes again. Could it really be this easy?

My favorite…the vintage car market…seems to be saying the same thing. The April 2008 top is right before the crisis. This time around, it seems the crash is not quite as prompt but the downward slope since the 2015 peak is not looking good.

Collector Car Prices