As Friday inches closer and the Stock Market is sending mixed signals about the auto bailout, some people might be thinking of buying into the auto companies with the hope that some good news will rally the stocks up again as last week. (Although we don’t think it would be the same this time) It would be a good time to remind ourselves of one of the “Deadly Investment Sins”
Deadly Investment Sin:
Believing that you have to predict the market’s next move to make a good profit.
The reality of the matter is that, no matter what the analysts are talking about and tipping on CNBC or BBC in regards to the Auto Bailout this time, they are no better at predicting the market’s next move than either you or me but don’t take my word for it.
I don’t usually give investment advice on what to buy as I encourage people to do their own research and do what they believe in, as we do for ours.
Earlier this week, it has been reported that Chrysler might face a substantial percentage of sales during this period of time in 2008 and also more discouraging news about the Big 3 auto companies. As a long term investor who at the moment still cannot see how the Big 3 could turn it around, I would find it hard to bring myself to invest in them…no matter what the news would be during this weekend, don’t put your money on a guessing game, it will no longer be an investment but a gamble.
As for option traders, keep your eyes peeled for “Puts” come Monday if the news turn out to be good for the Big 3 during the weekend.
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Good article!
A straight forward view on things. The stock market is shaking!
I’m feeling sorry for people who are losing in the game of investments.
We need more good financial advice.
My best advice for investing! Bullets, Bandaids and Boullion!
Thanks!
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