Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Silver Bull Market Update - 7th Aug 20
This Inflation-Adjusted Silver Chart Tells An Interesting Story - 7th Aug 20
The Great American Housing Boom Has Begun - 7th Aug 20
NATURAL GAS BEGINS UPSIDE BREAKOUT MOVE - 7th Aug 20
Know About Lotteries With The Best Odds Of Winning - 7th Aug 20
Could Gold Price Reach $7,000 by 2030? - 6th Aug 20
Bananas for All! Keep Dancing… FOMC - 6th Aug 20
How to Do Bets During This Time - 6th Aug 20
How to develop your stock trading strategy - 6th Aug 20
Stock Investors What to do if Trump Bans TikTok - 5th Aug 20
Gold Trifecta of Key Signals for Gold Mining Stocks - 5th Aug 20
ARE YOU LOVING YOUR SERVITUDE? - 5th Aug 20
Stock Market Uptrend Continues? - 4th Aug 20
The Dimensions of Covid-19: The Hong Kong Flu Redux - 4th Aug 20
High Yield Junk Bonds Are Hot Again -- Despite Warning Signs - 4th Aug 20
Gold Stocks Autumn Rally - 4th Aug 20
“Government Sachs” Is Worried About the Federal Reserve Note - 4th Aug 20
Gold Miners Still Pushing That Cart of Rocks Up Hill - 4th Aug 20
UK Government to Cancel Christmas - Crazy Covid Eid 2020! - 4th Aug 20
Covid-19 Exposes NHS Institutional Racism Against Black and Asian Staff and Patients - 4th Aug 20
How Sony Is Fueling the Computer Vision Boom - 3rd Aug 20
Computer Gaming System Rig Top Tips For 6 Years Future Proofing Build Spec - 3rd Aug 20
Cornwwall Bude Caravan Park Holidays 2020 - Look Inside Holiday Resort Caravan - 3rd Aug 20
UK Caravan Park Holidays 2020 Review - Hoseasons Cayton Bay North East England - 3rd Aug 20
Best Travel Bags for 2020 Summer Holidays , Back Sling packs, water proof, money belt and tactical - 3rd Aug 20
Precious Metals Warn Of Increased Volatility Ahead - 2nd Aug 20
The Key USDX Sign for Gold and Silver - 2nd Aug 20
Corona Crisis Will Have Lasting Impact on Gold Market - 2nd Aug 20
Gold & Silver: Two Pictures - 1st Aug 20
The Bullish Case for Stocks Isn't Over Yet - 1st Aug 20
Is Gold Price Action Warning Of Imminent Monetary Collapse - Part 2? - 1st Aug 20
Will America Accept the World's Worst Pandemic Response Government - 1st Aug 20
Stock Market Technical Patterns, Future Expectations and More – Part II - 1st Aug 20
Trump White House Accelerating Toward a US Dollar Crisis - 31st Jul 20
Why US Commercial Real Estate is Set to Get Slammed - 31st Jul 20
Gold Price Blows Through Upside Resistance - The Chase Is On - 31st Jul 20
Is Crude Oil Price Setting Up for a Waterfall Decline? - 31st Jul 20
Stock Market Technical Patterns, Future Expectations and More - 30th Jul 20
Why Big Money Is Already Pouring Into Edge Computing Tech Stocks - 30th Jul 20
Economic and Geopolitical Worries Fuel Gold’s Rally - 30th Jul 20
How to Finance an Investment Property - 30th Jul 20
I Hate Banks - Including Goldman Sachs - 29th Jul 20
NASDAQ Stock Market Double Top & Price Channels Suggest Pending Price Correction - 29th Jul 20
Silver Price Surge Leaves Naysayers in the Dust - 29th Jul 20
UK Supermarket Covid-19 Shop - Few Masks, Lack of Social Distancing (Tesco) - 29th Jul 20
Budgie Clipped Wings, How Long Before it Can Fly Again? - 29th Jul 20
How To Take Advantage Of Tesla's 400% Stock Surge - 29th Jul 20
Gold Makes Record High and Targets $6,000 in New Bull Cycle - 28th Jul 20
Gold Strong Signal For A Secular Bull Market - 28th Jul 20
Anatomy of a Gold and Silver Precious Metals Bull Market - 28th Jul 20
Shopify Is Seizing an $80 Billion Pot of Gold - 28th Jul 20
Stock Market Minor Correction Underway - 28th Jul 20
Why College Is Never Coming Back - 27th Jul 20
Stocks Disconnect from Economy, Gold Responds - 27th Jul 20
Silver Begins Big Upside Rally Attempt - 27th Jul 20
The Gold and Silver Markets Have Changed… What About You? - 27th Jul 20
Google, Apple And Amazon Are Leading A $30 Trillion Assault On Wall Street - 27th Jul 20
This Stock Market Indicator Reaches "Lowest Level in Nearly 20 Years" - 26th Jul 20
New Wave of Economic Stimulus Lifts Gold Price - 26th Jul 20
Stock Market Slow Grind Higher Above the Early June Stock Highs - 26th Jul 20
How High Will Silver Go? - 25th Jul 20
If You Own Gold, Look Out Below - 25th Jul 20
Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending - 25th Jul 20
FREE Access to Premium Market Forecasts by Elliott Wave International - 25th Jul 20
The Promise of Silver as August Approaches: Accumulation and Conversation - 25th Jul 20
The Silver Bull Gateway is at Hand - 24th Jul 20
The Prospects of S&P 500 Above the Early June Highs - 24th Jul 20
How Silver Could Surpass Its All-Time High - 24th Jul 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

British Car Maker Aston Martin License to Thrill No More

Companies / Auto Sector Mar 19, 2019 - 05:20 AM GMT

By: EWI

Companies

By Murray Gunn

The luxury British car maker Aston Martin has learned a hard lesson; namely, diamonds may be forever, but the market for $400,000 cars is not. A February 28 Guardian article confirms that since going public on the London Stock Exchange last October, Aston Martin's shares have plummeted 40% amidst billions of dollars in losses. To be fair, some of the loss can be attributed to the company's IPO costs, but we believe that where there's smoke, there's fire. The IPO, in and of itself, is a splendid signal that the credit cycle, and the positive social mood which fueled a massive expansion of credit and rising stock values, is undergoing a bearish shift. A fall in Aston Martin's fortunes equally represents a fall out of favor of one of the most recognizable bull market icons -- Bond, James Bond.


Since Ian Fleming wrote the caddish secret agent into being in 1952 amidst the postwar bull market, Bond's popularity has risen and fallen with the Dow. (See chapter 10 of Socionomic Studies of Society and Culture here.) And since Bond drove onto the big screen in 1964's "Goldfinger" in his epochal Silver Birch DB5, the character has been synonymous with the luxury car brand.

In 2005, during the great stock market boom and one year before the 2006 blockbuster hit "Casino Royale," Aston Martin experienced its best year on record and turned a profit for the first time in its 90-year history. Optimism was so high that a June 26, 2007 Motortrend piece affirmed that the company's new owners, who just bought it for $1 billion, planned to "recover a good chunk of their investment through an initial public offering in the London Stock Exchanges within five years." Those plans were soon derailed by the 2007 stock market peak and ensuing global financial crisis. Aston's IPO hopes went up in smoke, as a December 1, 2008 Telegraph article revealed, the car maker's drastic cut of "one-third of its workforce amidst the extraordinary market condition we all now face."

Flash ahead to 2018, the 2007-9 Great Recession firmly in the rearview amidst a record-shattering bull market, and Aston Martin decides to "remake the Classic James Bond DB5" at a sky-high price of $3.5 million (Put it on "M's" tab!). Coincidentally, the car maker announced take two of its plans for an IPO. In an August 29 report titled "Live and Let Die," I published the following long-term chart of the Dow Jones Industrial Average which showed five instances when Aston Martin's insolvency or deep financial stress coincided with troughs in the global economy and wrote:

"Now, with Aston Martin"s popularity and confidence so elevated that it is going public, the probability that the IPO coincides with a peak in the global economy is high. Expect financial markets to be shaken, as well as stirred, in the months ahead."

Aston Martin Lagonda's first day of trading as a public company was on October 3, 2018 the exact day of the top in the Dow. Fittingly, global James Bond Day was October 5. The Dow then declined by 19% into December, while Aston's stock plunged 40%, no doubt making investors feel like Goldfinger did when Bond took away his gold.

The 25th installment of the James Bond franchise, "Bond 25," is slated to hit theaters in 2020. Meanwhile, Aston Martin hinted of a partnership with "aerospace experts to develop a new model with takeoff and landing capabilities." (September 20 USA Today). I can envision no better symbol of soaring optimism than a flying Aston in the next Bond film. But should the villain of a bear climb into the passenger side of the market as it is whisking through the clouds, investors are going to wish for a Q-worthy ejector button to cast it out.

Discover how the popularity of James Bond films has fluctuated with the Dow Jones Industrial Average in this free chapter from Socionomic Studies of Society and Culture. Read the chapter now.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules