| What is the deal with the Big Three Auto Industry? | | | | future of the Big Three? It takes some serious |
| For many investors, this questions arises as they look | | | | digging into the history of the Auto Industry to really |
| to potentially invest in one of the Big Three | | | | be able to evaluate what the root causes are. |
| companies in the Auto Industry segment. The main | | | | However, if you simply look at a chart of GM stock |
| reason for looking at these stocks this way is due to | | | | over the past 10 years, you will see that each rally |
| the relatively low price at with you can buy ford or | | | | GM has made out of its declines have failed to bring |
| GM stock. While a purchase may be in order for | | | | it to a new high, while the lows have just kept |
| sentimental reasons, like remembering the place | | | | getting lower. This shows the inherent weakness in |
| where you worked for 20 years, the Big Three Auto | | | | The General's ability to continue to pay dividends - |
| Industry as an investment is a terrible idea right now. | | | | the factor which has made them such a bellwether |
| Bargain hunters invariably want to buy low and sell | | | | blue chip over the past 50 years. Moreover, as Ford |
| high. Looking at the price of GM stock, which peaked | | | | and GM take on more and more debt in this |
| at $38 dollars two years ago and is at $2 or so | | | | economic slump, their ability to pay dividends may be |
| today, you can see that the range in which the stock | | | | forever damaged. Buying the Big Three right now |
| has traded is quite large. Many people will look at this | | | | and expecting them to rebound to their previous |
| and think that once we are out of this economic | | | | glory is as bad an idea as buying a Chevy Vega. |
| funk, GM can easily return to $38 a share or even | | | | Want to find some really great stocks to buy right |
| more. Unfortunately, the chances of this actually | | | | now? Find out more on how to find the Best Stocks |
| happening are nearly zero. | | | | to Buy. |
| Why am I giving such a pitiful prognosis for the | | | | |