Can you Afford a Ford....Stock?

-By: Brittany L. Reid

Considering the recent recession, one may wonder if taking interest in the Ford Stock Price is a wise investment.  The Ford Stock Price is the price or value of stock in the Ford Motor Company.  Before one can consider investing in this automotive corporation, it is important to have a basic understanding of the stock market and how it affects one’s finances. 

                  In the stock market, people buy shares of a company so that when the value of the company rises, investors receive a profit.  When the stock prices continue to increase over a long period of time, buyers refer to this as a Bull market.  When the stock prices decrease, it is a Bear Market.  So now, the question is whether or not the current economy has resulted in the Ford Stock Price being a Bear Market, or a Bull Market.

                  The cause for the current state of Ford’s stocks can be traced back about eight years.  In 2004, Alan Mullaly was brought into the Ford family.  He made wise decisions concerning the financial aspects of the company while simultaneously brainstorming to reconstruct some crucial areas of the corporation.  In the early stages of the recession, Mullaly opted to drive Ford down a different route than its competitors by providing the company with billions in finances as a safety net.  Chrysler and General Motors, in contrast, gassed up their engines by accepting federal bailouts, which ended up giving them car trouble.  Alan Mullaly was later appointed as the chief executive and president of the Ford Motor Company in September, 2006.  Since then, the Ford Stock Price has continued to maintain fairly high value.  This can be attributed to the company analyzing various benefits of smaller, more energy-efficient vehicles, as well as investigating various methods of cost reduction.  The company’s Ford Motor Credit branch is also a top contractor of auto-financing.  However, comparing Ford’s business in the United States to its global competition highlights other defining factors for whether or not it is a good investment.  China, South America, and Europe are just a few of the leading contenders that serve as healthy competition for the company. 

                  In conclusion, the Ford Stock Price has had relatively moderate to strong buys over the past few months.  One might say that the stock is in the green zone.  It’s not a Bear Market, but it is not quite a Bull Market either.  In the end, when it comes to the stock market, whether or not one decides to invest in a company depends on the stock buyer’s personal research and analysis of the corporation.