Tuesday, December 30, 2008
I am fairly new to investing in the stock market, but I have been watching from the sidelines for years. One thing I do understand is a lot of investors utilize emotion to influence stock picks. GM and Chrysler went begging from money from the government to continue doing business and Ford did not, instead opting for a possible smaller loan in the future if the other two go belly up. That gives me more confidence in Ford. They are in better shape financially. If this is true, why is GM stock outperforming Ford. Is it just because people think the government Will bail out GM forever? They will be back asking for more money next year. The billion that they are getting this year is just to get them through this year. So, please if you know or think you know why GM stock is doing better than Ford please tell me. Leave a comment! I really would like to make money and stocks are cheap now. Tell me what you would buy or not buy. Tell if you would stay out of the market right now, and if so where would you put your money to get a decent return. I know people read blogs to get advice, but I read a lot of blogs and the comments are full of "this is what I am doing". Let me know!
Wednesday, December 03, 2008
Since I am trying to increase my wealth in order to retire earlier, I am keeping a close eye on the stock market. I did not have any money in stocks prior to the current situation but I have been a lurker for years. I do have money in 2 401Ks but that is another story for another time. What I want to say is about Ford (F). Yesterday, it announced that it may be able to make it on its own, but want a $9B standby loan just in case either of the other two declare bankruptcy which would affect Ford because they use a lot of the same parts dealers, etc. Well to me this makes Ford seem like a good buy if they don't need a taxpayer bailout. However, my expectations of a massive buying spree was disappointing to say the least. Maybe I don't get it. Do people want Ford to take a $25B dollar bailout? It would put more money on their books but it would also add to their debt (If they plan to pay it back). Well, I for one will keep buying Ford, unless something radical happens. It was 2.70/share yesterday. When this stockaphobia people have is over and it starts climbing maybe I will be able to retire.