sould you but GM stock
Answers
318 points
TBone answered 7 months ago …
I wouldn't.
You have Japanese automakers who are making more popular products and don't have the legacy costs that GM and Ford do. Buy a GM car if you want to support american business but if you want to make money in this market you should really focus all of your efforts on finding the strongest companies in an industry, not the worst.
2082 points
alanj answered 7 months ago …
Not now. According to the indicators I use the S&P and Dow are becoming over bought. It would not surprise me to see a down trend established sometime within the next couple of weeks. It could be days. And in the next couple of months the March lows will most likely be tested. When the indexes start heading down most stocks will follow especially the majors like GM. Wait a couple of months before you buy. And GM could be a bit of risk. They have a lot of financial difficulties. This would be considered a high risk speculative trade even when you wait for the indexes to go back down to it's previous lows.
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368 points
ads answered 7 months ago …
Basically what the other posts are saying is "do your homework" and only invest in those businesses that are strong. right now GM is in rough shape and that when the market makes its next move lower for an extended period of time (which it will very likely do before much longer), then GM will likely decrease even further in value.
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3963 points
MNSL answered 7 months ago …
I think investors should not keep companies in auto sector, commodity sector, real estate sector and some industrial and material sector in their portfolios now. It will take longer period to recover many companies in these sectors.
This is the time to invest in next rotating sectors, neglected sectors, simple businesses and sectors with promising future globally. Some small companies in some sectors will be become leaders in the next 05 years.
Some big giants will struggle due to overexposure to highly risk assets having mountain of debt in their books.
