Galt Stock

Independent Investment Research for IRA’s and 401K’s

Nov. 18, 2008

We are starting a new Detroit rescue plan today.  I am asking every one of my readers to buy GM stock.  You can buy it today for less than $3 per share.  What a great buy; think of how many shares you can own!  This is our “Investor” Bailout.  If each of us buys $10,000, worth of their stock they might make it and we can continue buying their cars.  Do not worry about losing your money if they go bankrupt, think of all the jobs you are helping to save!  You have very little chance of ever making money on it, but you will have done something good with your money.  This is the decision the congress is making.  For the democrats it is like your brother-in-law works there and gives you money to help with your family budget.  The republicans are mostly from non-union states, some of which host foreign auto plants, and they see your brother-in-law as an unruly thug.  Enough about my family.  Maybe the test for the congress should be if you are voting to grant $25 billion to Detroit, all of your personal retirement and liquid assets must be invested in GM and Ford stock.  Same for the top management at each company.  To avoid any skullduggery they would have to abstain from any vote concerning additional legislation later.  I would go along if they put all of their personal savings on the line.  As they used to say in the old west, “Nothing concentrates the mind like a public hanging”.

The DOW closed @ 7997 lowest since 2003, the S&P500 support is 789 set on 3/14 2003.  The market was led lower by the financial sector; banks are like lepers right now.  If you own them, you don’t want to admit it!  So let’s recap what we have learned in the last week, do not buy banks, automotive, or retail stocks.  Oh, and resources are bad, commodities are no good, and tech is terrible.  The market did not have the feel of forced selling today, just a gradual drift lower.

We shall see what tomorrow brings.

WARNING:    The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it’s your money.  If you lose it, it’s your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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