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If Wall Street taught you how to invest intelligently, they'd be out of business. Learn how to invest comfortably and confidently for your future by focusing on value investing and ignoring the silly daily swings of the stock markets.
Where Should I Put My Money These Days?
11/27/2008 | Joe Ponzio | 21 Comments | about: GM
Second only to Do you think we’ve hit a bottom?, the most common question I hear from folks is: Where should I be (or are you) putting money these days? It is usually followed up with some statement about how terrible the stock market is and/or how impossible real estate is right now.
Then, I get hit with the request for affirmation-the old, XYZ company is pretty beat up. What do you think? Most recently, the request has been about General Motors and Ford. Before that, Bank of America, AIG, and Fannie/Freddie.
Why do I call this a “request for affirmation”? Most of the time, the people asking have been decimated in the markets and are feeling the need or desire to make it back quick. They want to take a gamble on a beat down company, not because the business is sound, but because what was a $20 or $50 or $80 stock is now a $2 or $3 stock.
So…coming back from a long (and long overdue) break, let’s get back to the basics. And to do that, we’ll pick on General Motors again.
