Payday for Car Contrarians

Apparently you only had to do one trade this year to re-make your horrible 12 months into a decent one: Buy auto stocks ten days ago when people briefly thought they might not be bailed out. Check the following:

Ford has done a 123% run from the trough of despair, and GM a 70% climb. Turns out that this contrarian thing can pay. One day, of course, something big will be left to fail and a lot of investors betting on a bailout will get hurt, but this apparently isn't the one.

Comments

[Vox Rationalis:]

All you have to do is put what you have left on black - problem solved. Either you're back to even or you have nothing left to worry about.

2008 Dec 02 02:12 PM

[Chris B:]

Ha ha, that's silly. Everyone knows EVEN pays off better!

2008 Dec 02 02:58 PM

[Greg Weston:]

I prefer automaker debt to stock. For more have a look at my article on XGM.

2008 Dec 03 12:12 AM