Many car stocks, surprisingly, are no longer a bunch of clunkers.
David Sowerby, senior portfolio manager for Loomis, Sayles in Bloomfield Hills, noted when he reviewed the trailing 12-month returns for Ford and nine major auto suppliers that the average gain was 260%.
Ford alone gained 450% from early 2009 to Jan. 11 when it closed at $12.11 a share.
Of course, auto stocks rallied after a miserable meltdown. Ford, for example, closed at $2.19 a share on Jan. 16, 2009. Other auto-related stocks were far less than $5 a share, as well.
"They were priced for purgatory," Sowerby said.Contact Me
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