It’s perhaps the most hated bull market in America that seemingly defies all expectations (and desires to be honest). Following the severe disruption of the novel coronavirus pandemic, several markets went haywire to the upside, including most conspicuously the used-car sector. But with media reports stating that wholesale prices for secondhand vehicles have been moving lower from their highs, this boded poorly for auto stocks.
Until, that is, the situation started boding positively again for auto stocks. What gives? Another false-positive? In this particular case, seemingly contrasting events are actually both true. As CNN pointed out, lower wholesale prices may not translate to lower consumer costs because dealerships these days rely less on wholesale and more on directly acquiring inventory from private sellers.
More critically, the semiconductor crisis that has resulted in an ongoing computer chip shortage that frustratingly ebbs and flows has contributed to production shortages. In a