Saw a news item yesterday where Goldman-Sachs or one of those other high-power investment bankers recommended its customers dump all their automotive stocks. Might be a time to buy, might not; the ol' crystal ball is a little cloudy, and the "magic 8-ball" never gave much good investment advice when I needed it.
Back in the 1970's, there was talk about the government antitrust folks making GM split off Chevrolet as a separate company, since GM had around 58% of the domestic car market and their closest competitor, Ford, only had about 30%...but Ford was against splitting up GM. Their logic was that GM "only" had 58% of the market, while a split GM and Chevy might end up with 30% EACH, and cut deeper into Ford's market share. These days, I'd reckon Ford and GM both would call that time "the good old days," considering where market share is today.
In these "global economy" days, I'd imagine Honda or Toyota might be a better investment if you're looking for growth...with the Koreans like Hyundai or Kia being a tad riskier, but with higher potential gains. But unless GM and Ford change their mindset and start marketing a better product--more of what the consumer "wants," as opposed to what Detroit says the consumer "needs" to buy--I don't look for the domestic manufacturers to be any kind of great investment for the long term.
Still, when your dividend makes the stock pay an 8.7% return, it IS kinda tempting. Just make sure any brokerage fees don't turn that into a losing proposition, too.
JMHO...and he wife can tell you how often I'm wrong, 'cause she likes to keep score on those kinda things.
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