Hard to imagine buying an auto stock at a time of rising recession fears, higher (and likely even higher) interest rates, and growing geopolitical tensions. But many analysts believe GM's push into the EV space with a focus on vertically integrating the battery and precious metal feedstocks required to power these vehicles will put them in the sweet spot ahead of Ford (F) and others.
Some analysts challenge that notion and highlight the newly elected Republican majority in the House which could become a headwind to implementation of the massive tax-incentives recently enacted to push the transition away from fossil fuels.
The chart is quite telling. GM fell over 50% from the start of the year to recent lows, and has made a couple of attempts to retrace that selloff, stopping out at the Fib 23%. But the recent upswing in the 20dma above the 200dma has bulls taking note.
I have no current position in GM, though I do own Ford in an investment account, partly as a turnaround play (new CEO, cost controls, etc), partly as a dividend play and partly on the EV play (with the F150 an already hot must-have in the marketplace!). But contemplating adding GM. If I didn't have such a strong negative view on the overall market, I might pull the trigger here. But more likely, I'm waiting for a pullback before initiating. (BTW, my overall market view is driven by the view that current valuations and earnings estimates do not adequately account for the wage/price spiral that I believe is already underway and is being missed by the Fed. Just as "transitory" was the Fed's mistake of 2021, ignoring the 'wage/price spiral' will be their mistake of 2022).
Any thoughts????
(NOTE: THIS IS NOT ADVICE IN ANY WAY! ONLY FOOD FOR THOUGHT AND DISCUSSION!)
Some analysts challenge that notion and highlight the newly elected Republican majority in the House which could become a headwind to implementation of the massive tax-incentives recently enacted to push the transition away from fossil fuels.
The chart is quite telling. GM fell over 50% from the start of the year to recent lows, and has made a couple of attempts to retrace that selloff, stopping out at the Fib 23%. But the recent upswing in the 20dma above the 200dma has bulls taking note.
I have no current position in GM, though I do own Ford in an investment account, partly as a turnaround play (new CEO, cost controls, etc), partly as a dividend play and partly on the EV play (with the F150 an already hot must-have in the marketplace!). But contemplating adding GM. If I didn't have such a strong negative view on the overall market, I might pull the trigger here. But more likely, I'm waiting for a pullback before initiating. (BTW, my overall market view is driven by the view that current valuations and earnings estimates do not adequately account for the wage/price spiral that I believe is already underway and is being missed by the Fed. Just as "transitory" was the Fed's mistake of 2021, ignoring the 'wage/price spiral' will be their mistake of 2022).
Any thoughts????
(NOTE: THIS IS NOT ADVICE IN ANY WAY! ONLY FOOD FOR THOUGHT AND DISCUSSION!)