Car stocks out of favour as economy slows down

Auto stocks are out of favour with US investment managers in the belief that the sector is likely to be hit by the slowdown in the US economy. The sector has seen record sales of 17.5 million automobiles over the last year but Edinburgh Fund Managers and Henderson do not believe that this rate of sale is sustainable. Auto stocks have also been underperforming the main US market over the past 12 months. The S&P Automobiles index is down by 18.7% in dollar terms over the 12 months to 3 July compared with a rise of 5.85% in the S&P 500 over the same time period. Johnny Russell, US fund manag...