....you don't think autos would be severely impacted in a GFC 2.0?
....Autos belong to Consumer Discretionary, and in a recession, discretionary items would be the first to thrown out of the window by the consumer. They are discretionary after all.
...Consumer Discretionary and Materials were amongst the worst hit during the GFC. The Best and Worst Performing Sectors during the 2008 Crisis
The most defensive sectors during the 2008 recession were those that supplied necessary goods and services. These goods and services have very “inelastic demand”, which just means that people will consume them even when they feel poorer. The sectors include consumer staples (everyone still has to do their groceries), healthcare (you will still hope to visit a doctor and eat medicine after falling ill) and utilities (you will still want to shower and have your lights on at night). Given that the previous recession stemmed from a housing and banking crisis, the worst performing sectors were Real Estate and Financials.
Source: Bloomberg, retrieved 3 June 2020.
Total returns shown are for the time period corresponding to the peak-to-trough of the S&P 500 Index, between 9 Oct 2007 and 9 Mar 2009.
Total return figures are inclusive of dividends received.
