The Automobile Industry

Before an analysis of potential stocks for a portfolio can be undertaken, one must first analyze the environment in which the respective companies conduct their business. First, I want to elaborate on the state of the economy as a whole before I will focus specifically on the automobile industry and its particular role within the American economy at present. Economic Analysis The American economy is entering 1998 in its 8th year of economic expansion. Surprisingly, a …

…I would recommend investing in Honda Motor Co., Ltd. for our project, even though I don't feel the industry as a whole is attractive. Even Honda will not be a high-achiever or outperform the market, but I feel that it is the soundest and most promising company I looked at. Net result: a weak YES on the recommendation but it could very well be bumped by other stocks that are located in more promising industries.