A Sign of the Times

Will 2009 go down in history as the year we started fixing our own cars?

A look at AutoZone Inc. (NYSE: AZO), the do-it-yourself auto parts store, is an interesting example of how consumers are hunkering down in tough times.

Here’s a long-term chart going back to 1998…

See larger image

You’ll see AutoZone’s stock was lackluster during the tech bubble run-up… that makes sense.

After the tech bubble popped, AutoZone’s stock was up 286% while the S&P500 dropped almost 50%.

Then AutoZone’s real success began in 2009. Following a 55% sell off in the S&P500, AutoZone has rallied 336% to date.

I haven’t peaked under the hood of AutoZone’s annual report yet. But if a strong stock price is any indication of what cash-strapped consumers are doing… the message is clear:

In tough times, car owners are turning to AutoZone.

And with stock performance like this, investors should do the same! But not just yet… after a run-up as steep as AutoZone’s, we’d be wise to wait for a pullback to cheaper prices.

The World’s “Safest” Investment is About to CRASH

The one investment you may hold dear to your heart… the one investment that helps you sleep better at night, that you rely on for safety, security, and maybe even profits in a world gone mad… is about to get slaughtered.

When it happens, trillions in wealth will be wiped out virtually overnight!

To find out exactly what this investment is, click here.

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Categories: Markets

About Author

As the managing editor for Economy & Markets, Chris works directly with Harry Dent, Rodney Johnson, and the rest of the Dent Research team to bring you their economic analysis and market insight six days a week. Prior to working for Dent Research, Chris was an English teacher in Baltimore City.