It’s been a good couple of weeks for stock market bulls, at least if you follow economic indicators. First, we saw a marked uptick in consumer spending. Next, July business spending remained in expansion territory, despite dipping somewhat from its 16-month high in June. Although the headlines were gloomy — focusing on the low GDP number for the second quarter — there’s just as much reason to expect an increase in business spending as a decline in the coming months. #-ad_banner-#That said, with stock prices near all-time highs, investors need to exercise some caution lest they buy overvalued stocks that… Read More
It’s been a good couple of weeks for stock market bulls, at least if you follow economic indicators. First, we saw a marked uptick in consumer spending. Next, July business spending remained in expansion territory, despite dipping somewhat from its 16-month high in June. Although the headlines were gloomy — focusing on the low GDP number for the second quarter — there’s just as much reason to expect an increase in business spending as a decline in the coming months. #-ad_banner-#That said, with stock prices near all-time highs, investors need to exercise some caution lest they buy overvalued stocks that do nothing despite decent economic performance over the next 12 months. Fortunately, there remain plenty of companies to choose from with solid prospects in the near term and excellent long-term opportunities. One of these is General Electric (NYSE: GE). GE is an iconic company with roots in classic American themes: innovation, ingenuity and industry. Its history is storied, and blue chips don’t come any bluer. But as I’ve said before, what’s most attractive about the stock is not its past, but its future. GE has restructured its business through spinoffs and acquisitions to again focus on innovation — and it… Read More