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Strategies & Market Trends : 50% Gains Investing

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To: JakeStraw who wrote (73769)3/5/2009 9:09:24 AM
From: Keith Feral of 118717
 
Debt is already trading up near 10%, so the markets have already discounted GE's downgrade to BBB status, well below the rates for a AA company. If a downgrade to AA doesn't have an impact on operations, the bonds should recover, which might set up a rally for GE from here.

The fear seems to exceed the reality. The trading opportunity for GE is likely setting up today. As I have learned from situations like C and BAC, you have to jump on the first rally - not that I will be playing this one either.

It's not that I don't think GE will be around in 10 years, there are better companies to invest.
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