Car Repos Jump In The First Half Of 2024 As Fed Eyes Rate Cuts
Portfolio Pulse from Michael Juliano
Car repossessions have surged by 23% in the first half of 2024 compared to the same period last year, driven by higher interest rates. The Federal Reserve is expected to cut rates in September, potentially easing the burden on borrowers. Credit Acceptance Corporation (CACC) and several ETFs tracking it have seen positive price action.
July 16, 2024 | 8:47 pm
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Credit Acceptance Corporation (CACC) saw a 3.89% rise in its stock price, likely due to the increased demand for auto financing amidst higher repossession rates.
The rise in car repossessions indicates higher demand for auto financing services, benefiting companies like Credit Acceptance Corporation. The anticipation of rate cuts by the Fed could further boost the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
RiverNorth Patriot ETF (FLDZ) improved 0.20%, reflecting the positive market sentiment in the auto finance sector.
The ETF's slight gain is influenced by the overall positive trend in auto finance stocks, driven by higher repossession rates and potential Fed rate cuts.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Schwab Fundamental U.S. Small Company ETF (FNDA) jumped 2.94%, likely benefiting from the positive trend in small-cap auto finance stocks.
The ETF's significant gain is driven by the positive sentiment in small-cap auto finance stocks, influenced by higher repossession rates and expected Fed rate cuts.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
IQ Candriam U.S. Mid Cap Equity ETF (IQSM) moved up 0.33%, likely benefiting from the overall positive trend in auto finance stocks.
The ETF's performance is partially driven by the positive sentiment in the auto finance sector, influenced by higher repossession rates and expected Fed rate cuts.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
John Hancock Multifactor Small Cap ETF (JHSC) picked up 2.63%, reflecting the positive market sentiment in small-cap auto finance stocks.
The ETF's gain is influenced by the overall positive trend in small-cap auto finance stocks, driven by higher repossession rates and potential Fed rate cuts.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
SRH U.S. Quality ETF (SHRU) gained 0.61%, reflecting positive sentiment in the market for auto finance-related stocks.
The ETF's performance is influenced by the positive movement in auto finance stocks like CACC, driven by higher repossession rates and potential Fed rate cuts.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50