While this recession is certainly hitting some people hard, there are a lot of young professionals, who, so far, seem to be weathering the storm without any problems. In fact, some of us are approaching the point of having disposable income, and looking for a place to invest it.
If someone were to buy 1000 GM shares now, at $1.60 a share, and hold on to them while the economy bottoms out, then begins climbing back upward — and assuming a company like GM survives the fall-out — such a person could make out like a bandit. If GM’s stocks were to return to half their April ’08 value, an investment of $1600 would net a return of $23,400. That’s 14 times the initial money, in what could be a fairly short amount of time.
We’re not, ourselves, thinking of such an investment, but a friend is. As I stated earlier, I haven’t a lot of confidence in GM. And we’d rather invest when things begin curving upward, not while they’re curving downward. But that change in curve direction can’t be too far off, and one wonders how many opportunities you get in your life to buy when things are really low…
I don’t know my financial history well enough, but is this how previous recessions were turned around? Have people historically made money this way? We dabbled in the stock market a little bit a few years back, made a very thoughtful and researched buy and sell, and made enough money to buy a couple nice couches. It was certainly something we’d consider doing in the future… What say you, Internets? Any advice out there?