Expert: Dr. Joseph de Beauchamp - 7/12/2005

Question
I've have heard that GM is close to going bankrupt. I guessing on this but wondered if it might work. Okay you wait till GM gets to its lowest point. Obviuosly the goverment wont let a large company like GM to go under so either they will step in or someone will buy them out which will inturn bring stocks back up. So if I were to buy stocks at the lowest point and wait until they go up I could theoretically make more money.


Answer
A few others have followed your logic. The stock is off the $27 dollar low and up. You might want to wait for a pull back to this price, and then buy. You are correct: buy low and sell high is the basic principal of investing.

Dr. Joseph de Beauchamp