Posted By RichC on January 14, 2020
The stock market continues to rally on positive news: low inflation, cheap money, increasing wages, low unemployment and even good news on trade with China. If there was ever a time to use the “hitting on all cylinders” idiom, this would be it … but when things are looking this good … everybody gets a little nervous.
I’ve been wondering if and when the bottom will fall out (a socialist like Bernie Sanders or anti-free market advocate like Elizabeth Warren rising in the polls as we near the election might do it?) As for what to do, that’s the dilemma for investors since there aren’t any returns from the traditional safe, conservative, low-risk investments people move to when they seek safety or to when things get a little too “frothy.”
There was some good news on my “Waiting for Godot” turn-around investment, General Electric (GE), on Monday. I’m still waiting for the corner to be turned … but have been regularly seeing analysts turning positive, even if only a little bit. Perhaps this will be the year GE gets a foothold and can start to make their shareholders money again?
As for positives from analysts Deusche Bank’s Nicole DeBlase commented that even though $GE was still in turn around mode under CEO Larry Cup, the firm told clients to buy the stock and to bank on near-term gains. They believe GE has the potential to beat in the 4th quarter and give positive 2020 guidance. I’m crossing my fingers.