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How the Smart Money Is Capitalizing on the Car Market Crisis

Keith Kohl

Written By Keith Kohl

Posted July 21, 2021

Three years ago, I made one of the best decisions of my life and bought a Jeep. 

You could call it love at first sight for myself and the sleek black Rubicon that looks better dirty than clean. 

It can also absolutely crumple a Tesla like a tin can without getting so much as a dent too.

Little did I know at the time, but it turned out to be a better investment than I first thought.

We all know that a Jeep has one of the best resale values on today’s market.

However, I didn’t realize at the time how well that would work out for me in 2021.

A couple weeks ago, I got quite an unusual call from the dealership that sold it to me. 

Within seconds, I knew what the caller was after…

That monstrous muddy ebony beauty sitting out in my driveway. 

However, it wasn’t the fact that he was hoping to wheel and deal to get it back. After all, the used car market is on fire right now.

No, what really left me speechless was that he was willing to pay me MORE than I originally paid for it. 

And the reason why might surprise you…

What You May Not Realize About Today’s Car Crisis

All the investment herd knows about the used car sales boom taking place right now is that it’s a buyer’s market. 

Over the last decade, the value of used vehicles has risen steadily. 

That is, it did until last year when prices for these cars suddenly spiked. 

And as you can see below, prices surged during the COVID pandemic, far exceeding the cost of new vehicles earlier this year.

im1usedcarprices

How bad have things gotten?

Well, the explosion in used car prices was one of the primary reasons why the consumer price index rose to a 13-year high two months ago, and represented roughly one-third of that increase.

In fact, used car prices rose 30% over the prior 12 months up to that point.

Of course, it’s understandable to not have this on your investment radar, especially if you’re not actively looking to buy a car.

If you’re scratching your head as to why, the reason may not be as easy to pinpoint as you think. 

Actually, there’s a little more going on behind the scenes of this supply-and-demand fairy tale. 

And you can bet the smart money is capitalizing on it.

So why aren’t you?

How the Smart Money Is Capitalizing on This Crisis

Normally, high demand in the used auto market wouldn’t be that big deal. 

But that’s under normal circumstances.

Supply would just catch up and be the equalizer here, wouldn’t it? In order to balance the market, the industry would just boost the supply of new cars. 

Well, not exactly.

The smart money calls it a perfect storm for profits. 

Here’s what happened…

Perhaps the biggest factor behind this car market crisis is the shortage of semiconductor chips. 

You see, the chip shortage we’ve been talking about here at Energy and Capital is why automakers can’t simply boost production. 

The lack of semiconductor chips that are critical components in new cars has caused new-car inventories to plummet. 

Remember, it’s not just the world’s largest car companies that desperately need these chips.

They’re vital to virtually every piece of tech we use today…

From the phone in your pocket to the computers and laptops you own at home and work, all the way down to the car you drive today.

Semiconductor chips also happen to be the second-largest U.S. export.

The best part is that this crisis will exacerbate over the next few months. 

Yes, I did say “best part.”

That’s because there’s a silver lining buried in this chip crisis. 

And it’s creating a huge window of opportunity for investors smart enough to know where to look. 

Fortunately, you don’t have to worry about beginning your search — I’ve done that for you.

Tomorrow morning, I’ll show you how to play the chip shortage firsthand and turn this crisis into pure profit.

Until next time,

Keith Kohl Signature

Keith Kohl

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A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.

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