Ford and GM Downgrade
A UBS analyst just downgraded these stocks and he’s actually putting a sell rating on Ford.
And both of these stocks, as expected, are collapsing right now as this analyst believes there’s going to be weakening demand moving forward after these companies reported record profits in the COVID era.
And what’s adding fuel to the fire is the fact that J.P. Morgan’s CEO just came on the air and said that he believes the US and the global economy could get into a deeper recession six to nine months from now.
And he said the S&P 500 could fall another 20%.
And you guys remember what happened to automotive companies in the last recession, right? This makes me a bit nervous.
And you guys can see on the charts, Ford (NYSE:F) is down 35% in just the past two months, and we have GM (NYSE:GM) down about 25%.
So, GM (NYSE:GM) is actually holding up a little bit better, but both of these stocks are collapsing.
Let me know your thoughts, follow along for more.