🇺🇸 The iShares Core U.S. Aggregate Bond ETF is hanging out near resistance yet again. It’s up 9.25% over the past 23 months.

Is this when stock market corrects and $AGG breaks out of this triangle? Or is there no real reason for bonds to escape the doldrums?

Time will tell…

📊 CHART WATCH 📊

🇺🇸 Ford Motor ($F) & General Motors ($GM) have hit 52-week highs, buoyed by the pending expiration of EV tax credits ($TSLA begged them to stop this last Thursday) & the news that the EPA intends to repeal the “foundational” ruling asserting so-called greenhouse gases are “a threat to human life.”

Ford trades at a forward P/E ratio of 7.9—a premium over GM’s 5.1. On the other hand, Ford just beat on earnings by 12%, while GM beat by 0.3%. Ford has also more quickly adapted to the new reality of tariffs. Kevin Haggerty:

Ford Motor Company has announced a $5B domestic investment in its Michigan and Kentucky plants and will change its assembly line for the first time in 120 years. It plans on building an affordable "all-electric" pickup truck that will sell for $30k. Instead of an assembly line, they will employ an assembly "tree" that will reduce costs to keep the price low. They will build the vehicle in 3 pieces requiring fewer time, fewer people, and a lot less cost. FMC CEO Jim Farley said it will revolutionize how vehicles are constructed.

The new “Ford Universal EV Production System” is expected to produce vehicles 40% faster with fewer people and less expense.

Ford is attempting to compensate for cost increases due to automotive tariffs with new expansion & these countervailing efficiencies in domestic production, which help qualify for critical tax cut incentives as a bonus.

This would protect margins and/or increase product affordability, either of which would help Ford secure a greater position in the American market. Short interest on Ford has fallen 4.2% in a month, and the Canadian Pension Plan added $6.75M in August for a total holding of $78.5M.

If Ford can preserve upward earnings momentum & execute on its assembly tree strategy, there may be very bright days for $F & its share price* ahead—including relative to $GM, which is historically overvalued against $F at this decisive juncture.

*Don’t even contemplate considering this financial advice.

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