GE (GE) missed its numbers, toned down the guidance, had problems with its finance and healthcare businesses.
The way this is being portrayed is that they really did not see it coming until very recently.
This is a perfect example of how an ETF can be a better proxy for a sector than a stock. I have never owned the stock in my time as an investment manager.
The thought process all along has been quite simple. Earlier this decade, so early in the bull market, the stock had the headwind of it being the wrong time for mega caps. Then, as the time that mega caps should lead came upon us, my thoughts focused on whether or not a huge complex conglomerate was the best way to access the industrial sector and, again, my answer was no.
Part of it is that I don't like media, which ironically was a bright spot. More importantly, though, I have not been a fan of financials for ages.
We are hearing that infrastructure is strong, so maybe that is a reason to own the stock. Well maybe, and of course at some point, the stock will, at a minimum, ride the coattails of a bull market. (Maybe it'll even provide leadership?). However wouldn't it make more sense to own a purer infrastructure name?
There will be billions and billions spent over the next decade or two on infrastructure globally - and this is not debatable - so it is reasonable that stocks in this space will do very well over that time period. (Note that this does not really create urgency right here right now).
I can't rule out luck for having avoided GE, but it has been a woeful laggard, and despite so many people coming on CNBC who have talked it up, I think the best it can hope for over the next few years is riding the market's coattails.
