No clue, but BMW and DCX have also been hammered the last coupe of days, they are probably a safer bet IF they don't get hit with similar issues, which the market seems to fear now (I read about the X5 having some issues in some test, but of no DCX car (mercedes) so far. I'm already looking at serious unrealized losses in the european car industry, might add a little when the market calms down. Actually curious about your thoughts on VW as well
As a former RIA, I'd never advise investors to buy into a crashing market. Rarely works out. At some point, of course, it's good... but how do you know/guess it's "now"? (I have a rule of thumb... I'd like to buy something "down -90% from the high.... yes that's a legit play. You'd be surprised at how many issues down -90% experience a huge volume spike/capitulation... indicating 'longs can take it any longer'... yet that's about the right time to be taking risk. That said, I recall technology funds declining up to -97.5% from the highs after the .com tech bubble collapsing... requiring a subsequent +300% gain to break even for those who bought '-90% down'. IOW... even buying "-90% from the high" is not necessarily a "no-brainer".) However.. if you made a habit of buying "-90% from the highs"... and traded with discipline on the stop (just in case), odds are you'd be very successful in the long run. Unfortunately few of us knucklehead traders have either the patience or discipline to pull that off.
Learned that from our government, didn't they? VW is "cooperating with the EPA"... sorry they got caught, you know. They're facing a possilble $3,700 fine per vehicle. WOW! There's a lesson in all this... "MOST OF US CANNOT TELL WE'RE BEING LIED TO UNTIL IT'S TOO LATE". VW is a gross example, but SO IS OBAMA!!!!!!!!!!!! (And Obama is costing America MULTITUDE times more damage than VW stinking up the air a bit.)
18 billion in fines? and where will that money go? It goes to the EPA? Sounds like a pretty good shakedown to me. Make a law that makes it about impossible to stay profitable and then fine them when they break it. The EPA doesn't give a shit about clean air, they just want to collect fines. Bout the equivalent of a massive meter maid.
Wouldn't touch it. Vehicles installed with software to pass emissions tests. The fines are just the start, essentially they deceived customers into believing they were buying low emission vehicles when in fact the opposite was true. Figure on lawsuits / class action to follow.
Of course they learned from our government....and it is true, no one knows their being lied to until after the fact, but if you do think you are being lied to you are either one crazy consumer or full of conspiracy theories.... I have called a few companies over this past month to question some of their labeling on their products and boy oh boy did they make it sound like nothing was wrong, they are given a script to go by so when someone like me calls, they have it all ready to go...one offered me free coupons, I said no thanks, you can keep them...
one time my firm got too one sided on a particular bond and people just weren't buying them. The manager got on the squawk box and told the brokers, "I need you to get on that phone AND START SELLING THE TRUTH!"