Forget GE, These Are the Industrials Investors Should Consider Owning [View article]
In a deflationary environment, big companies with big debt will get choked more than their cautious competitors; in an inflationary environment, the opposite will occur.
GE is a decent hedge against inflation, either from excessive government spending on infrastructure (GE products and services are in high demand for many types of infrastructure), or from inflation reducing the relative cost of their debts.
However, the fact that GE is a "decent hedge" against inflation doesn't mean its the best choice, and certainly doesn't mean GE has the greatest long-term gains ahead of it relative to other contenders who avoided excessive purchases.
Hence, I'll put some money on GE and feel comfortable (unless it goes the way of AIG), but I'd look elsewhere for big gains.
Forget GE, These Are the Industrials Investors Should Consider Owning [View article]
GE is a decent hedge against inflation, either from excessive government spending on infrastructure (GE products and services are in high demand for many types of infrastructure), or from inflation reducing the relative cost of their debts.
However, the fact that GE is a "decent hedge" against inflation doesn't mean its the best choice, and certainly doesn't mean GE has the greatest long-term gains ahead of it relative to other contenders who avoided excessive purchases.
Hence, I'll put some money on GE and feel comfortable (unless it goes the way of AIG), but I'd look elsewhere for big gains.