Auto Industry is at all time low and investors think that is good.

Discussion in 'Economy' started by Neubarth, Apr 2, 2009.

  1. Neubarth
    Offline

    Neubarth At the Ballpark July 30th

    Joined:
    Nov 8, 2008
    Messages:
    3,751
    Thanks Received:
    199
    Trophy Points:
    48
    Location:
    South Pacific
    Ratings:
    +199
    Auto Industry is at all time low and investors think that is good.


    Ford, Chrysler, Honda, GMC et all are experiencing sales down more than 40% from last year. People madly started buying the auto companies when they reported that March total sales were up about 1 to 2% over February.

    That is funny as hell! When I heard that, I almost pissed my pants I was laughing so hard.

    Has anybody counted the number of days in February (28) and then compared that to March (31).

    When sales per day are tabulated, March was a worse month than February.

    How could people be so damned stupid? Buy, Buy, Buy those auto stocks. Meanwhile the mutual funds were offloading their positions in auto companies as the idiotic fools were buying.
     
  2. editec
    Offline

    editec Mr. Forgot-it-All

    Joined:
    Jun 5, 2008
    Messages:
    41,427
    Thanks Received:
    5,598
    Trophy Points:
    48
    Location:
    Maine
    Ratings:
    +5,617
    Shit!

    Does that mean I wasted my money on Packard stock?

    Damn!

    I knew I should have jumped on on Stanley Steamer when it was cheap.

    Thank GOD I got into American motors early on
     
  3. wimpy77
    Offline

    wimpy77 Member

    Joined:
    Jan 21, 2009
    Messages:
    591
    Thanks Received:
    10
    Trophy Points:
    16
    Ratings:
    +10
    i agree with neubarth on this one the common stock get totally killed.
     
  4. garyd
    Offline

    garyd Senior Member

    Joined:
    Dec 19, 2008
    Messages:
    3,943
    Thanks Received:
    401
    Trophy Points:
    48
    Location:
    Oklahoma
    Ratings:
    +401
    It is at least two years and perhaps four away from a true bull market so unless you've got the time and energy to buy and sell stocks almost hourly in order to make a minimal profit, this isn't a good time to get into the market. I think the real estate market is about another six months away from bottoming out as well so this probably isn't good time to invest in that market. If you already have stock sit on it. No point in capitalizing losses you don't have too. There are of course exceptions. Chrysler I'd sell. Ford I'd hang on to. I'd buy neither at this point.
     
  5. Toro
    Offline

    Toro Diamond Member

    Joined:
    Sep 29, 2005
    Messages:
    50,719
    Thanks Received:
    11,047
    Trophy Points:
    2,030
    Location:
    The Big Bend via Riderville
    Ratings:
    +25,044
    GM stock is worth $0. Chrysler stock is worth $0. Ford might be worth more than $0.

    But it is easy to understand why stocks went up - they went up in sympathy with the rest of the market as the market prices in the end of the recession.
     
  6. garyd
    Offline

    garyd Senior Member

    Joined:
    Dec 19, 2008
    Messages:
    3,943
    Thanks Received:
    401
    Trophy Points:
    48
    Location:
    Oklahoma
    Ratings:
    +401
    The recession hasn't ended. Don't kid your self. We've got a ways to go before we ever see good times again. We've got another bull trap in process right now and it's based on air.
     
  7. Toro
    Offline

    Toro Diamond Member

    Joined:
    Sep 29, 2005
    Messages:
    50,719
    Thanks Received:
    11,047
    Trophy Points:
    2,030
    Location:
    The Big Bend via Riderville
    Ratings:
    +25,044
    I don't think the recession has ended. However, the worst is almost certainly behind us.
     
    • Thank You! Thank You! x 1
  8. editec
    Offline

    editec Mr. Forgot-it-All

    Joined:
    Jun 5, 2008
    Messages:
    41,427
    Thanks Received:
    5,598
    Trophy Points:
    48
    Location:
    Maine
    Ratings:
    +5,617
    Almost 800,000 layoffs in March?

    I don't know about the market.

    It seems to live in an economic environment which is bearly related to the American economy, but I do not think we're even close to that bottom of the economic cycle, yet.

    As to real estate?

    I don't think that's bottomed either. Not at least in those areas where the real estate market had gone completely crazy.

    It may have bottomed in those places where there hadn't been such enormous price increases to begin with, though.

    There are damned few foreclosures in this neck of the woods, for example, even though Maine's economy has never been very good.

    In fact, that's probably why there isn't a huge amount of foreclosures and price decreases hereabout.
     

Share This Page