Under what economic forecast would you believe an auto manufacturer would be a good investment? A...

Under what economic forecast would you believe an auto manufacturer would be a good investment? A computer manufacturer?

Expert Solution

Answer: Auto manufacturer would be a good investment- When these things are favorable:

When future growth is expected in sales of major auto companies then those stocks can be bought.
When auto index is expected to do well and most of the auto stocks are trading above their 30 days or 50 days moving averages.
If U.S dollar weakens against other foreign currencies, it will give boost to sales of the auto companies who are global sellers.
If economy is doing well, there boom in the economy then people will buy automobiles and Auto numbers will be good and auto shares will perform better.
If major auto stocks are touching their 52 weeks low then they should be bought and they should be sold near their 52 weeks high.

Computer manufacturer would be a good investment- Technology is increasing day by day and touching each and every industry, people are using computers so there will be always the need of computers in upcoming time. This industry is always good to invest. Companies are using technology for better interaction with customers, for taking competitive advantage and for growth, they always invest in new technology.

Tech stocks provide higher premium, valuations of companies are good so investing into computer manufacturer stocks is a good idea.

jeff jeffy answered 8 months ago

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