Tag Archives: GM
Thanksgiving week is often a festive period for stocks, and this year seems to be following the well-worn pattern. I welcome it, believe me I do. It’s always more fun to be counting your profits than gritting your teeth and buying into bad news (as we contrarians have trained ourselves to do at market lows).
So you thought I was kidding? Back in our September issue, I cautioned that the stock market’s “correction” off the August highs could continue not only into September but October as well. Sure enough, that’s what has happened, with the S&P 500 closing today at its lowest level since late June.
Over the long pull, I’m not at all sure. The world’s #1 auto maker has lost market share to foreign competitors for 30 years, and the company’s heavy retiree-benefit obligations could eventually sink the ship. Well before that happens, though, I expect GM to undertake a series of “restructuring” (life-saving) efforts.