Automobile Industry
Before an analysis of potential stocks for a portfolio can be undertaken, one must first analyze the environment in which the respective companies conduct their business. First, I want to elaborate on the state of the economy as a whole before I will focus specifically on the automobile industry and its particular role within the American economy at present.
Economic Analysis
The American economy is entering 1998 in its 8th year of economic expansion. Surprisingly, a real downward trend is not in sight; to the contrary, the prospects for the economy are still very promising. The numbers are impressing, considering how long the economic upturn has been: e.g. the inflation rate is stable at 1.7%, unemployment is at its lowest level in over 20 years (4.7%), and the consumer confidence in the economy is still very high.
The near future also looks rosy: producers' durable equipment spending is expected to rise by 10%, indicating that the economy is still anticipating an upward......
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Approximate Pages: 34 (250 words per double-spaced page)
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