GM Inside News Forum - View Single Post

ericmvest · 07-23-2008, 12:42 PM

It seems investors are having a difficult time placing a value on General Motors stock. The run down on General Motors stock since the unfavorable Merrill Lynch analysis seemed extreme. Maybe the stock market is efficient in the long term, but in the short term it seems to be driven by emotions rather than logic. Humans tend to get caught up in a herd mentality and buy high and sell low. Wise investors with the cash to invest can make a killing in these situations.

An interesting side note is that Merrill Lynch posted a $4.9 billion second quarter loss. I wonder if their analysts are more competent than their senior management?

07-23-2008, 12:42 PM	#7 (permalink)
ericmvest 3.8 Liter Supercharged V6 Join Date: Feb 2007 Posts: 652	Re: GM Stock Nearly Doubles in One Week It seems investors are having a difficult time placing a value on General Motors stock. The run down on General Motors stock since the unfavorable Merrill Lynch analysis seemed extreme. Maybe the stock market is efficient in the long term, but in the short term it seems to be driven by emotions rather than logic. Humans tend to get caught up in a herd mentality and buy high and sell low. Wise investors with the cash to invest can make a killing in these situations. An interesting side note is that Merrill Lynch posted a $4.9 billion second quarter loss. I wonder if their analysts are more competent than their senior management? Last edited by ericmvest : 07-23-2008 at 01:00 PM.