Stocks to Watch: Toyota vs. GM
All the talk from NAIAS is about GM right now: the electric hybrid Volt (possibly to be released in two years’ time),the Saturn Aura and Chevy Silverado winning North American Car and Truck of the year, respectively…
All of this led to Friday’s 3% drop for Toyota ™ and GM’s 2% rise. This sort of short-term attack (or boost, if you’re a GM investor) on your portfolio is just the kind of thing market-timers look for, and everyone is calling TM a buy right now, with after hours trading showing Toyota up and GM down.
Toyota’s market leadership is not likely to be toppled within the next two quarters, and GM’s financial troubles are going to linger on long after the last severance is paid.
Toyota should recover, and quick. Those investors savvy enough to get in on Friday will likely see gains within the next two weeks, while those riding GM’s high tide are taking a far greater risk.