Bubblicious used automobile costs rising sooner than bitcoin, Jim Bianco warns

Your car may be more valuable than what’s in your portfolio.

According to market researcher Jim Bianco, used car prices are rising faster than Bitcoin and other assets.

“If you want to know what’s the best investment you’ve likely had in 2021, it’s this car that’s in your driveway or garage,” the president of Bianco Research told CNBC.Trading nation“on Thursday.” It is appreciating faster than the stock market and lately faster than some cryptocurrencies. “

He bases his analysis on the Manheim used car price index, which is designed to track price developments in the market.

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“In the last four months the price has increased by more than 20%. Not only is this more than the S&P, but more than Bitcoin itself in the past four months, ”he said. “As of December 15th, the latest data we have is just accelerating. At least until now there has been no peak.”

Bitcoin is up about 5% over the past four months based on Thursday’s market close. the S&P 500 has increased by 26% so far this year.

Bianco cites two optimistic drivers in the used car market. The first are those that are falling out of new cars due to semiconductor shortages.

Read more about electric vehicles from CNBC Pro

Kelley Blue Book reports that car prices are at record highs. In November, the median price of a new car was $ 46,320 and a used car was $ 27,569, a 27% increase over the same time last year.

The second: speculators who want to turn vehicles over.

“What we see in used cars is a rush for people to buy them and a rush for people to speculate on them,” he noted. “Buy it now, it will only get more expensive.”

“Tell-Tale Signs of a Bubble”

It is clearly not your parents’ auto market.

“It has all the tell-tale signs of a bubble,” he said. “Used car prices are supposed to be a depreciation factor. They shouldn’t increase in price. But this year they have increased by 49%, let’s call it 50%.”

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Bianco suggests the shock with car price stickers reflects a bigger problem.

“That’s exactly what they have [Federal Reserve] I don’t want this to happen because that’s this self-reinforcing idea of ​​inflation, “he noted.

Last December on Trading Nation“Warned Bianco that 2021 could be the first inflationary comeback in a generation.

He believes inflation will fall in 2022, but its fall will be much slower than most people think. As for a peak in car prices, Bianco suggests it’s everyone’s guess.

“It could go on for another year. It could be two more weeks,” said Bianco. “The activity you’re seeing is likely bubbly.”

Disclaimer of liability

Manson denies abuse allegations from actor Esmé Bianco | Leisure

Manson and Bianco began a long-distance relationship later in 2009, the suit reads.

Manson brought Bianco back to Los Angeles in 2011, ostensibly to appear in his feature film “Phantasmagoria,” although that project never came about.

During that visit, Manson did not allow Bianco to leave the house without his permission, chased her through her apartment with an ax, cut her with a “Nazi knife” without her consent, and photographed the cuts and posted the pictures online, even without hers The lawsuit claims consent.

“It took Ms. Bianco years to understand the extent of Mr. Warner’s physical, sexual, psychological and emotional abuse. Her career suffered as her mental health deteriorated, ”the suit reads. “To this day, she deals with complex post-traumatic stress disorders, anxiety, depression and panic attacks.”

The Associated Press generally does not identify anyone who claims to have been sexually assaulted, but Bianco said in a statement that she is going public to spread her allegations in the hope that others will do the same.

The lawsuit said Bianco feared for her safety at the time if she did not comply with Manson’s demands and did not go to the authorities. But her attorney, Jay D. Ellwanger, said she has now reached out and spoken to the FBI and local law enforcement.