This Is What A Market Top Looks Like
Markets follow the same cycle and it’s why auto prices could be headed for a major correction.
There’s a long and steady rise.
Then a parabolic upswing.
Then it stops and slowly reverses.
Then it waterfalls.
Then the cycle begins anew.
It happens over and over and over again.
You can see it real time in the used auto market.
Here’s the chart of the Manheim Used Vehicle Index:
The first half of the cycle is illustrated right there.
Long bull run, parabolic upswing, and then cresting top…
Up next is the dip and the potentially crushing waterfall.
If you’ve looked at used car prices, you know they are insanely high.
Historically speaking, the used car market will continue to slide and it risks bringing down a lot of auto dealer stocks with it too.
