When a well known, well run conglomerate such as General Electric misses earnings exceptions causing the stock price to tumble thirteen percent I can not help but get excited.
We are no longer in the age of buying high and selling higher, rather we have to look at our current economic state and become bargain hunters. When pundits say the sky is falling, that were in a recession and everything is being affected by the credit crunch; they’re right. The rules have changed. This doesn’t mean we have to pull money out of the market, but instead do the opposite and look at what’s undervalued.
It gets harder and harder to find companies that are ‘recession-proof’, ‘has no exposure to the sub-prime mortgage crisis’ and/or have ‘international focus’. Stock prices will slide for awhile and with a handful of financial companies reporting earnings next week the market is going to drop. Instead of being shocked like many were with General Electric, its time to realize exactly what the market is going to do and what you should about it.
Buy more!
General Electric’s drop gets me excited because I have a chance to buy at a bottom. I have been looking at GE for almost a year now and so far it has looked overvalued. I know that during the next coming weeks this stock will go lower, though this is horrible news for stockholders being a prospective buyer I can not wait. General Electric isn’t going bankrupt and with GE being a well diversified conglomerate they will have to make sacrifices such as the speculated sale of NBC and will bounce back. Many say that GE is the gauge on how the market is doing overall, and even though the entire market will fall that is when you buy.
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.
Leave a Comment