Who’s going bankrupt? Assessing The COVID-19 Impact On US Automakers

Summary Assessing the duration of the lockdown is the real key to understand the impact on the economy. Industries a with high proportion of fixed costs will be more vulnerable to a long stint. We assess the possible impact of the lockdown on US automakers. Make no mistake. The current crisis will be life-threatening to… Read More Who’s going bankrupt? Assessing The COVID-19 Impact On US Automakers

Keep an eye on the corporate credit market during the COVID-19 crisis

Photo credit: Federalreserve The credit market will be pivotal during the current crisis. In 2008, we had a problem in the credit market (Subprime mortgages), which made financial institutions move into credit tightening mode. Soon, that start cascading into the real economy. The current environment inverts that relation. The problems start with the real economy… Read More Keep an eye on the corporate credit market during the COVID-19 crisis

Thoughts on the Coronavirus, and its impact for investors

Summary The virus seems more contagious, but less fatal than the SARS 2003 outbreak. The fact that it might be more contagious increases the likelihood of negative economic impact. With the stock market near all-time highs, we wonder if investors will maintain the confidence from end of 2019. Photo credit: Eelke The year has started… Read More Thoughts on the Coronavirus, and its impact for investors

The Mustang EV Might Be Ford’s Ultimate Multiple Decompressor

Summary The auto industry has been dealing with compressed earnings multiples for some time now. The market identifies traditional automakers as value traps. Automakers will need to break into growth segments of the industry to invert the perceptions. The new Ford Mustang Mach-E might be Ford’s answer to that problem. Note: Originally published on Seeking… Read More The Mustang EV Might Be Ford’s Ultimate Multiple Decompressor