The One Stock I'd Pick to Play the Precious Metals Rebound: SWC

Ford Motor Co. (NYSE: F) recently announced that May was the best month for its truck sales in six years. Truck sales offer some insight into the state of the economy. Increased truck sales confirm higher consumer confidence. Trucks are gas guzzlers, and many consumers will only buy them and other large vehicles if they are confident they can afford the gasoline.

Auto sales are also growing with manufacturers reporting that new-vehicle sales are up 8.2% compared to a year ago. Analysts expect sales to reach 15.3 million this year, up from less than 14 million in 2012, and up over 50% since the recession lowered annual sales to about 10 million.

Auto stocks are one way to trade this news, but I think their suppliers can be better trades. Platinum and palladium are used in catalytic convertors and could increase in value along with the demand for cars and trucks. (more)

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