You know the old saying that goes something like this: stocks are probably the only merchandise that gains in popularity as they get marked up in price.
Though, with the benefit of hindsight, investing in GM stock a year ago looks like a no-brainer, at the time it was thought to be anything but. The buzz among investors was more focused on if and when GM would declare bankruptcy than on whether its stock represented an attractive turnaround play. In fact, as I pointed out in a column one year ago, just three of the investment newsletters I monitor were recommending GM.
The three newsletters? They are the Prudent Speculator, the Buyback Letter, and the Turnaround Letter. Hulbert says all three have excellent long-term records.
Well, Controlled Greed.com has only been around since April 2005. Hardly long enough to have any sort of long-term record -- good or bad. But based on Hulbert's column, it looks like I'm in good company in holding GM.
And, let me tell ya, GM gets way better press now than a year ago. If you've been a GM shareholder as long as me [early 2005] you know we're not out of the woods yet. But you also know the headwinds -- at least the journalistic ones -- are nowhere near as strong as last Christmas.
GM 2-yr chart